Daily News: January 31, 2018

Bon-Ton Files Restructuring Plan, to Close 40 Stores

Bon-Ton Stores filed a pre-packaged restructuring plan with the SEC two weeks after entering forbearance agreements with its ABL lenders, led by Bank of America

According to the filing, the company will close 40 stores in 2019 with another 20 stores on the company’s “watch” list. To finance the restructuring, the company plans on receiving up to $45 million in new money in exchange for equity in the company and is amending its existing ABL facility.

Under the terms of the forbearance agreements, the ABL credit agreement lenders and the forbearing holders of the second lien notes have agreed to forbear from exercising any and all remedies available to them as a result of the company not making the interest payment due on the notes on December 15, 2017, subject to customary terms and conditions.

The period under the ABL forbearance agreement will be automatically extended to February 4, 2018 if the forbearing holders of the second lien notes agree to the extension.

Bon-Ton, with joint headquarters in Milwaukee and York, PA, currently operates about 260 stores in the U.S., including its own furniture galleries and clearance centers.