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.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Member of Congress have reportedly been told President Donald Trump's administration has reached an agreement to put Chinese telecom giant ZTE Corp. back in business. Reports from the New York Times and Reuters said the deal brokered by the Commerce Department would require ZTE to pay a substantial... Delta Air Lines will resume non-stop flights between the U.S. and India next year, almost a decade after it exited the Indian market. The airline said Thursday that its decision to resume non-stop flights from the U.S. to India follows agreements between the U.S. and the governments of the United Arab Emirates and Qatar to address the issue of government subsidies provided to state-owned carriers. Mortgage rates continued their upward trend this week and hit a seven-year high, even as housing demand remained robust. According to data released Thursday by mortgage finance provider Freddie Mac, the 30-year fixed-rate mortgage rose to 4.66 percent in the week ending May 24, from 4.61 percent in the prior week and 3.95 percent a year ago. This is also the highest level since May 5, 2011.
Follow RTT