New Delaware Chapter 11 Filing- The Bon-Ton Stores, Inc.

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The Bon-Ton Stores, Inc. (NASDAQ: BONT), a department store retailer headquartered in York, PA, has, along with nine (9) of its affiliates and subsidiaries, filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-10248).  Bon-Ton issued a press release announcing its filing on Sunday and has set up a restructuring website for interested parties.  Bon-Ton’s petition states that as of October 28, 2017, Bon-Ton had $1,586,595,000 in assets and $1,742,558,000 in liabilities.  According to the First Day Declaration, Bon-Ton enters Chapter 11 with its options open and is simultaneously pursuing both a standalone restructuring and a sale of substantially all of its assets under Section 363.  According to the Bid Procedures Motion, Bon-Ton enters Chapter 11 without a stalking horse bidder, but seeks authority from the Court to enter into a stalking horse agreement on or before March 19, 2018.  Bon-Ton also seeks approval of $725,000,000 in DIP financing provided by its pre-petition ABL lenders, with Bank of America, N.A., as administrative agent.  Prime Clerk LLC is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Mary F. Walrath.

Contact Norman L. Pernick or Nicholas J. Brannick for more information regarding this matter.  Please note, however, that Cole Schotz P.C. does not represent the debtors in these cases and cannot respond to questions directed toward the debtors.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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