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HARTMARX COMPLETES RESTRUCTURING

 CHICAGO, Jan. 4 /PRNewswire/ -- Hartmarx Corp. (NYSE: HMX) announced today the completion of its financial restructuring by refinancing $307 million of outstanding senior debt, obtaining an additional $35 million seasonal borrowing facility and selling $30 million of its common stock.
 The new agreement with the senior lenders is for a three-year term ending Dec. 30, 1995. The $35 million seasonal revolving facility with certain of the company's existing lenders expires Nov. 30, 1993, with an additional one-year extension at the option of the company. Borrowing under the debt agreements are secured by substantially all assets of the company, subject to a priority for certain trade creditors.
 The $30 million sale of equity was to Traco International, N.V., a Netherlands Antilles corporation, which purchased 5,714,286 shares of common stock for $5.25 per share along with a three-year warrant to purchase an additional 1,649,600 shares of common stock at an exercise price of $6.50 per share. Traco is a Netherlands Antilles corporation controlled by Abdullah Bakhsh, a Saudi Arabian businessman and investor who has previously invested in various other U.S. corporations. Traco is party to an agreement with Hartmarx which restricts Traco's right to acquire, sell and vote Hartmarx shares. The transaction has been approved under the Hartmarx stockholder rights plan.
 In connection with the sale of the shares and warrant to Traco, Talat M. Othman and Charles K. Olson, both of Dearborn Financial, Inc., were named to the board of directors of Hartmarx. Mr. Othman is president and chief executive officer and Mr. Olson is an executive vice president and managing director of the Arlington Heights, Ill., financial advisory firm.
 Elbert O. Hand, Hartmarx chairman and chief executive officer, said: "The first step of our financial and operational restructuring was the September 1992 sale our principal retail stores operated by Country Miss and 30 Kuppenheimer stores, along with production facilities supporting these stores. Disposing of these unprofitable operations strengthens our financial condition going forward and positions the company's return to profitability. At Dec. 31, the company's total debt was $251 million and $99 million of borrowings were available under the new loan agreements. The successful completion of our financial and operational restructuring now allows us to focus resources on our core manufacturing and wholesale businesses. In addition, we are delighted to welcome our new investor and board members."
 Hartmarx Corp. is the nation's leading manufacturer and wholesaler of men's and women's apparel. The company's businesses include Hart Schaffner & Marx, Intercontinental Branded Apparel, Hickey-Freeman, International Women's Apparel, Trans-Apparel Group, Biltwell Company, Universal Design Group, Henry Grethel Apparel, Kuppenheimer, Barrie Pace Catalogue and Fashionaire Apparel.
 -0- 1/4/93
 /CONTACT: Frank Brenner of Hartmarx Corp., 312-372-6300/
 (HMX)


CO: Hartmarx Corp. ST: Illinois IN: TEX SU: RCN

TS -- NY036 -- 1259 01/04/93 10:59 EST
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Publication:PR Newswire
Date:Jan 4, 1993
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