The Bon-Ton Stores has entered into forbearance agreements with lenders and a group of debt holders just weeks after the struggling department store chain announced it was using a 30-day grace period to delay a $14 million interest payment.
According to Bon-Ton, ABL Credit Agreement lenders and the forbearing holders have agreed to forbear from exercising any and all remedies available to them as a result of the company not making the interest payment due on December 15, 2017. The forbearance agreements will expire on January 26 unless further extended by the parties.
As previously disclosed, the company is engaged in ongoing discussions with its debt holders in an effort to strengthen its capital structure to support the business. A recent Bloomberg report said that Bon-Ton senior creditors were pushing the retailer to file for bankruptcy.