Bradlees Receives Six-Month Exclusivity Extension;
Bankruptcy Court Also Approves New Financing
PR Newswire - December 22, 1997 16:02
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BRAINTREE, Mass., Dec. 22 /PRNewswire/ -- Bradlees, Inc. today reported that the U.S. Bankruptcy Court approved the company's request for a six-month extension through August 3, 1998, of its exclusive right to propose and file a plan of reorganization. Bradlees said it expects to develop and file a consensual plan of reorganization by early April 1998. In addition, the bankruptcy court approved Bradlees' new $250 million financing facility. The new financing is furnished by a bank group led by BankBoston and provides for a $250 million debtor-in-possession (DIP) revolving credit facility for a period of up to 18 months and a $250 million post-bankruptcy revolving credit facility for an additional three-year period. The DIP facility will provide Bradlees with up to $50 million of additional liquidity, as well as enhanced borrowing capacity, acceptable financial covenants and lower financing costs. It will replace the current $200 million DIP facility, due to expire June 28, 1998. The post-bankruptcy revolving credit facility is subject to the satisfaction of certain conditions at the time Bradlees emerges from Chapter 11.
Peter Thorner, Bradlees Chairman and Chief Executive Officer, said, "We are pleased with today's positive court decisions. We look forward to working with our creditor constituencies to develop and file a consensual plan of reorganization that will allow Bradlees to successfully emerge from Chapter 11.
"During 1997, we have refocused our merchandising and marketing strategies, built a team of seasoned retail executives, and delivered significantly improved year-to-date operating results, compared with the same period last year. We are focused on three key merchandise lines: moderately priced family apparel and home goods, emphasizing quality and fashion in these businesses, and selective hardlines merchandise. The breadth of our apparel and home businesses provides a foundation to differentiate Bradlees from our competitors," Mr. Thorner said.
Bradlees, a leading regional discount retailer, operates 109 stores in seven Northeastern states with annual total sales of $1.6 billion.
For fax copies of Bradlees' news releases, please dial 800-758-5804, ext. 105750.
SOURCE Bradlees, Inc.
/CONTACT: Bill Roberts of Bradlees, 781-380-8354/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 105750/
/Web site: bradlees.com |
