logo
Plus   Neg
Share
Email

Bon-Ton Gets Court Approval Of First Day Motions To Support Business Operations

Bon-Ton Stores, Inc. (BONT) announced late Tuesday that the U.S. Bankruptcy Court for the District of Delaware approved all of its first day motions related to its voluntary petitions for a Chapter 11 financial restructuring.

Collectively, the approvals at a hearing on February 6 will support the Bon-Ton business and enable the firm to meet its financial obligations throughout the financial restructuring process.

The company said the Court approved authorization to access up to $725 million in debtor-in-possession or DIP financing from its existing ABL lenders. Bon-Ton also received authorization to continue payment of wages, provide health and other benefits to employees, and to pay vendors in the ordinary course for all goods and services provided on or after the Chapter 11 filing date.

Bill Tracy, President and Chief Executive Officer, said, "The Court's approvals of our First Day motions are an important step forward in our financial restructuring process that will allow the Company to continue operating in the normal course and executing on our key initiatives to drive improved performance. We intend to use the additional time and financial flexibility of this court-supervised process to engage with potential investors and our debtholders on a financial restructuring plan as well as evaluate options for our business."

It was on February 4 that Bon-Ton and its subsidiaries filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 bankruptcy protection as it grapples with massive debt and shrinking sales amid increased online competition.

The Company's stores, e-commerce and mobile platforms under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates are open and operating as usual.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Auto giants Volkswagen AG and Ford Motor Co. announced the launch of a global alliance to jointly develop commercial vans as well as medium-sized pickups for global markets, beginning as early as 2022. The two automakers will also collaborate on electric vehicles. For both the companies, Ford will engineer and build medium-sized pickups, and also commercial vans for European customers. Asia-focused lender HSBC said it settled $250 billion worth of forex trades using blockchain in the last year. Since February, HSBC has settled over 3 million forex trades and made over 150,000 payments using the distributed ledger technology. The bank used its FX Everywhere platform to co-ordinate payments across its internal balance sheets, in dozens of countries. JPMorgan Chase & Co. (JPM) reported Tuesday a profit for the fourth-quarter that grew 67 percent from last year. It took a one-time charge, as a result of the U.S. tax reform in the prior year. Net revenue for the quarter rose 7 percent from the previous year. Revenue for the quarter missed analysts' expectations.
Follow RTT