FAO Schwartz announced last Thursday that its plan to emerge from Chapter 11 bankruptcy was back on track and that it hoped to complete the transaction this week.  It also obtained a one-week extension, to April 24th, of its rights to use pledged cash to operate the business.  The company had previously announced a breakdown in negotiations, the possibility of liquidation, and the imminent loss of access to its cash (see 'FAO Schwartz Financing Collapses').  Citing uncertainty with regard to its ability to close the necessary deals, however, FAO also got approval from the court to conduct an auction of its assets Tuesday, April 22nd.  If the company is unable to close its financing deals, the sale of assets will be completed on Wednesday.  If FAO exits Chapter 11, the auction of assets will be moot.