Bankruptcy Court Approves $75 Million DIP Financing for Loehmann's, Inc.BRONX, N.Y.--(BUSINESS WIRE)--June 8, 1999-- Loehmann's Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :LOEHQ) announced today that on June 7, 1999 the Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). gave final approval to its $75,000,000 Debtor-In-Possession (DIP) credit facility with Congress Financial Corporation. As previously reported, Loehmann's filed for Chapter 11 bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most relief on May 18, 1999. On May 19, 1999, the Bankruptcy Court granted Loehmann's request to borrow, on an interim basis, $20 million under the Congress DIP credit facility. Following the news that the DIP financing had received the court's final approval, Mr. Robert Friedman, Chairman and Chief Executive Officer of Loehmann's, remarked, "We are very pleased with the progress being made in the bankruptcy case. With the credit facility now fully in place, Loehmann's will be able to work with its trade creditors and factors to restore a normal flow of merchandise." Loehmann's Inc. is a leading specialty retailer of well known designer and brand name women's fashion apparel, accessories and shoes at prices that are typically 30% to 65% below department store prices. Loehmann's operates 69 stores in major metropolitan markets located in 22 states. This release contains forward-looking information within the meaning of The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involve certain risks, uncertainties, and other factors which may cause actual results to differ materially from such forward-looking information. Such factors include, among other things, levels of sales and store traffic, general economic and business conditions, competition, development and operating costs operating costs npl → gastos mpl operacionales , advertising and promotional efforts, brand awareness, and the existence or absence of adverse publicity. For more detail, see the Company's annual and quarterly reports filed with the Securities and Exchange Commission (a copy of which may also be obtained from the Company at (718) 409-2000). Investors and prospective investors are urged to consider the factors discussed above, and to read the Company's annual and quarterly reports filed with the Securities and Exchange Commission. |
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