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P.A. BERGNER & CO. OBTAINS COURT APPROVAL TO ESTABLISH RECEIVABLES SECURITIZATION FACILITY

 P.A. BERGNER & CO. OBTAINS COURT APPROVAL TO ESTABLISH
 RECEIVABLES SECURITIZATION FACILITY
 MILWAUKEE, April 17 /PRNewswire/ -- P.A. Bergner & Co. Holding Company today announced that it had obtained the approval of the United States Bankruptcy Court for the Eastern District of Wisconsin to implement the final phase of the company's debtor in possession financing: a $225 million Receivables Securitization Facility.
 The Receivables Securitization Facility would replace the Receivables Bridge Facility, which has provided receivables financing to P.A. Bergner & Co. Holding Co. and its affiliates since its approval by the court in October 1992. Under the terms of the motion filed with the court, Bergner Credit would establish GLCC, a wholly owned non-debtor subsidiary of Bergner Credit, which will issue commercial paper to provide receivables financing.
 The formation of GLCC will enable P.A. Bergner and Carson Pirie Scott stores to finance their operations at substantially lower financing costs: the lowest possible interest rate. The interest rate that will be charged to GLCC on outstanding commercial paper will be approximately three percentage points lower than the interest rate currently charged on loans made under the Receivables Bridge Facility. This reduced interest rate should result in savings of approximately $5 million per year.
 Stanton J. Bluestone, president of P.A. Bergner & Co., stated: "Our ability to issue commercial paper secured by our accounts receivable demonstrates the fundamental health of our operations, and evidences another milestone in our plan to emerge from Chapter 11. This securitization facility will provide superior liquidity to our business at a significantly reduced interest rate, a combined benefit for every aspect of the company."
 P.A. Bergner & Co. filed for Chapter 11 protection with the U.S. Bankruptcy Court on Aug. 23, 1991, in Milwaukee. The company owns and operates 68 stores in Wisconsin, Illinois, Indiana and Minnesota under the Boston Store, Carson Pirie Scott and Bergner's store names.
 -0- 4/17/92
 /CONTACT: Darren Jackson, treasurer of P.A. Bergner & Co., 414-278-5717 or Jerry Seeman of Burson-Marsteller, 212-614-5135, for P.A. Bergner & Co./ CO: P.A. Bergner & Co. ST: Wisconsin IN: REA SU:


GK-TS -- NY009 -- 9662 04/17/92 11:20 EDT
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Publication:PR Newswire
Date:Apr 17, 1992
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