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Bon-Ton Work Fee Approval Sought

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Bon-Ton Stores filed with the U.S. Bankruptcy Court a motion to authorize the Debtors to pay a work fee to a consortium of investors led by Namdar Realty Group, Washington Prime Group and DW Partners (collectively, “Investor Group”) in connection with the proposed purchase of substantially all of the Debtors’ assets.

The motion explains, “By this Motion, the Debtors seek approval, pursuant to section 363 of the Bankruptcy Code, to pay the Investor Group’s Work Fee in the amount of $500,000….From the outset of these cases, the Debtors have been working to preserve the Debtors’ business, either through a stand-alone reorganization or a sale of the business as a going concern – thereby saving over 20,000 jobs and preserving a 120-year-old business that is a significant customer for its vendors, an anchor tenant for many of its landlords, and the leading hometown department store for millions of consumers in local communities throughout 23 states. With the full support of the DIP Administrative Agent and the Committee, the Debtors seek approval of this Motion on an expedited basis to help facilitate those goals. Over the past few weeks, the Parties have been diligently engaged in extensive negotiations regarding the Investor Group’s bid to acquire the Company, and those discussions culminated in the execution of the Letter of Intent on April 6, 2018.”

In addition, “The transaction contemplated by the Letter of Intent represents a significant and potentially valuable opportunity for the Debtors to consummate a sale transaction which will maximize value for the Debtors and their estates and preserve the Debtors’ business as a going concern. Accordingly, the Debtors and their advisors have devoted significant time and resources towards negotiating the Letter of Intent and positioning the Debtors to pursue a transaction that, in their view, is in the best interest of their estates.”

The Debtors also filed with the Court a motion to shorten the time for notice of a hearing to consider Debtors’ motion for authority to pay a work fee to Investor Group. The Court subsequently approved the motion to shorten and scheduled an April 11, 2018 hearing.

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