Caldor receives court approval for interim use of $150 million of its $250 million DIP financing -- Company Also Has Ability to Use Proceeds from Current Inventory--.NORWALK, Conn.--(BUSINESS WIRE)--Sept. 21, 1995--The Caldor Corporation (NYSE NYSE See: New York Stock Exchange : CLD CLD Called CLD Cloud CLD Cleared CLD Chronic Lung Disease CLD Council for Learning Disabilities CLD Cooled CLD Chronic Liver Disease CLD Clear Direction Flag CLD Certified LabVIEW Developer CLD Causal Loop Diagram ) announced today that it has received approval from the U.S. 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 interim use of $150 million of its $250 million debtor-in-possession financing Debtor-in-possession financing New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. commitment from Chemical Bank. The court also granted Caldor's request to continue to use cash receipts from the sale of its current inventory to purchase new inventory and to meet obligations associated with the operation of its business. "The $150 million in DIP financing, together with the proceeds from the sale of our inventory, provides Caldor with ample working capital to meet its financial needs during the initial stages of the Chapter 11 process," said Don Clarke, Chairman and Chief Executive Officer. "Our vendors, including both domestic and foreign suppliers, as well as our customers should be assured that we have the resources to conduct business as usual." The Company will request court approval for the balance of its DIP financing commitment in a hearing scheduled for October 11, 1995. Upon approval, Caldor will have access to in excess of $500 million, from the DIP financing and from the sale of inventory, to fulfill its needs. The Caldor Corporation is the fourth largest discount department store chain in the U.S., with annual sales of approximately $2.8 billion. It operates 166 stores in ten East Coast states. With a strong consumer franchise in high-density urban/suburban markets, Caldor offers a diverse merchandise selection, including both softline and hardline products. CONTACT: The Caldor Corporation, Norwalk Investor Relations Investor relations The process by which the corporation communicates with its investors. : David D. Peterson: 203/849-2334 or Kekst and Company, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Media: Wendi Kopsick/Jim Fingeroth, 212/593-2655 |
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