According to recent press and people familiar with the matter, The Bon-Ton Stores, Inc. has secured a loan that will allow it to file for bankruptcy as early as Sunday. The loan will help Bon-Ton continue to operate in bankruptcy and carry it through a potential sale, the sources said. The Company has also retained law firm Young Conaway Stargatt & Taylor LLP for its filing, in addition to attorneys from Paul, Weiss, Rifkind, Wharton & Garrison LLP, the sources added.
As reported in Form 8-K filed on January 29, 2018, The Bon-Ton Stores, Inc. engaged in discussions, pursuant to a non-disclosure agreement, with certain noteholders under the indenture governing the 8.00% Second Lien Senior Secured Notes due 2021 issued by The Bon-Ton Department Stores, Inc. regarding potential restructuring alternatives. The Company has not yet reached an agreement on mutually acceptable terms and conditions with the noteholders party to the non-disclosure agreement with the Company regarding a potential restructuring transaction. Read more on distressed companies.