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FINANCIAL NEWS
Loehmann’s to restructure debt
09 Feb 2011
(MENAFN) Loehmann’s lawyer said that the Dubia World-owned US discount department store, has gained necessary approvals for debt restructuring as it struggles to exit banckruptcy by the end of February, reported The National.
The lawyer said that a New York judge had ruled for a USD45 million exit financing commitment for Loehmann’s.
The reason behind the critical situation of the department store is a continuous decrease in sales in addition to less spending on designer items.
It is worth noting that Loehmann’s filed for bankruptcy after defaulting on USD110 million worth of debt. The debt restructuring plan eliminates around USD114 million of secured debt and would infuse USD25 million worth of new money into the company.
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