Bon-Ton is latest retailer to end up in bankruptcy court
Bon-Ton stores filed for chapter 11, aiming to close almost 50 of its 260 retail stores. Bon-Ton operates stores under its own name as well as the Boston Store, Carson’s Younkers, Herberger’s and Elder-Beerman brands. The company is looking to explore potential strategic alternatives during chapter 11, which could include selling all or some of the company’s assets.
Bon-Ton attributes the filing to the challenging retail climate that has claimed the likes of Toys “R” Us, Payless Shoe Source and Gymboree Corp. in the past year. The company lists between $500 million and $1 billion in debt and will be funded during its bankruptcy by a $725 million debtor-in-possession financing facility.
Read the declaration of Michael Culhane, executive vice president, in support of the first-day motions.
View the chapter 11 petition
Downward-trending paper-printing industry pushes Cenveo into bankruptcy
Printing giant and envelop maker Cenveo filed for chapter 11, seeking to restructure by shedding more than $700 million of debt and giving the first-lien lenders equity in the reorganized company as laid out in a restructuring support agreement (RSA). Under the RSA, the lenders intend to provide the company with a $290 million debtor-in-possession financing facility.
The company cited negative industry trends, a high debt load and changes in terms with vendors as reasons the contributed to the filing. As of the filing, the company had roughly $1 billion in funded debt with assets of $500 million to $1 billion.
Read the declaration of Ayman Zameli, chief restructuring officer, in support of the first-day motions.
View the chapter 11 petition
Ascent Resources seeking to restructure its drilling business
Shale driller Ascent Resources is seeking to drop its debt in a chapter 11 restructuring and hand equity in a newly reorganized company to the lenders. The company initially entered a restructuring support agreement (RSA) in September 2017 with most of its secured lenders under which the company pursued a marketing and sale process for all its assets. However, due to poor results, the company decided not to sell its assets, and the lenders have agreed to a debt-for-equity swap of their secured debt under the amended RSA.
As of the filing, the company listed liabilities of just more than $1 billion and assets of $500 million to $1 billion.
Read the declaration of Robert W. Kelly, general counsel and secretary, in support of the first-day motions.
View the chapter 11 petition
