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Non-Tech : Home Depot (HD) -- Ignore unavailable to you. Want to Upgrade?

To: Rich S who wrote (728)	6/11/1999 1:49:00 PM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 1169

quod erat demonstrandum. ----- Hechinger files for Chapter 11 bankruptcy June 11, 1999 10:51 AM NEW YORK, June 11 (Reuters) - Hechinger Co., one of the nation's oldest home improvement retail chains, said Friday it filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code and would immediately close 89 stores in 36 markets to cut losses and focus on a core of 117 performing stores. Hechinger, which has lost customers to upstart rivals like Lowe's Cos. Inc. (LOW) and Home Depot Inc. (HD), filed papers at the U.S. Bankruptcy Court in Delaware listing assets of $1.3 billion and liabilities of $1.4 billion including $323.0 million in unsecured or subordinated bond debt. Some 22 Hechinger affiliates, including BSQ Acquisition and Center Holdings, also filed for Chapter 11 protection. The Maryland-based home repair company's court papers said at least 5 percent of its voting securities are held by Center Holdings Inc, BSQ Acquisition Inc, Green Investors II LP, and Kmart Corp (KM). Kmart said separately Friday it would take a $230 million charge in the second quarter to cover costs of its exposure to the Hechinger bankruptcy. Privately held Hechinger said it does not meet requirements for continued listing on the Nasdaq SmallCap Market and expects to have its 5-1/2 convertible subordinated debt formally delisted. Hechinger has filed a motion seeking to refinance its working capital facility through a commitment for up to $700 million in debtor-in-possession financing from BankBoston Retail Finance Inc. Among the 20 largest unsecured creditors Hechinger listed are three bond issues for which American Stock Transfer & Trust Co. of New York City is the trustee. The claims are for $119.9 million for 5 1/2 percent convertible subordinated notes due 2012; $105.2 million for 9.45 percent senior notes due 2012; and $100.9 million for 6.95 percent senior notes due 2003. The remaining unsecured debt is primarily trade claims which range from about $1 million to $3 million. Hechinger is scheduled for a hearing at 1300 EDT before Chief bankruptcy Judge Peter Walsh. He will consider motions, including the one for debtor-in-possession (DIP) financing, that will allow the company to continue normal business operations while it reorganizes for its eventual emergence from Chapter 11 protection. Hechinger had warned in May that it was considering a bankruptcy filing. Kmart said Friday its charge would cover costs related to a subsidiary that subleased former Builders Square locations, and guaranteed those leases to Hechinger. Kmart said the charge reflects the possibility that as many as 115 former Builders Square locations may now become Kmart's responsibility. Kmart holds warrants to buy up to 24.8 percent of the common stock of Center Holdings Inc, court papers say. Kmart shares were up 1/8 to 15-1/16 in Friday morning trade, off a 52-week high of 20-7/8 but up from a low of 10-3/4.