The Bon-Ton Stores Inc., parent company of Elder-Beerman, has entered into forbearance agreements with its credit lenders.
The retailer announced late Tuesday that the company has entered into forbearance agreements with its ABL credit agreement lenders and an ad hoc group of holders. The Forbearance Agreements will expire on Jan. 26, unless further extended by the parties. The forbearance period under the ABL forbearance agreement will be automatically extended to Feb. 4.
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“The company is engaged in ongoing discussions with its debt holders in an effort to strengthen its capital structure to support the business,” Bon-Ton officials said in a statement. Bon-Ton Stores’ senior creditors are attempting to get the department store chain to file for bankruptcy, according to a report from Bloomberg.
Last month the retailer missed a $14 million interest payment due on Dec. 15, starting a 30-day grace period that ends next week. The Bon-Ton Stores, Inc. operates 260 stores, which includes nine furniture galleries and four clearance centers, in 24 states.
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