Troubled department-store operator Bon-Ton Stores Inc. said Tuesday it has entered forbearance agreements with some of its lenders, after failing to make a $14 million interest payment. The interest payment was due Dec. 15, but the company opted to take a 30-day grace period that has now ended. Under the terms of the forbearance agreements which Bon Ton made with its ABL Credit Agreement lenders and a group of holders of about 75% of the company’s 8.0% second lien secured notes that mature in 2021, lenders have agreed not to exercise any remedies available to them for the missed payment. The agreements expire on Jan. 26, unless further extended. “As previously disclosed, the Company is engaged in ongoing discussions with its debt holders in an effort to strengthen its capital structure to support the business,” Bon-Ton said in a statement. The notes were last trading at 25 cents on the dollar, according to trading platform MarketAxess, but that was 9 points higher than their trading level on Friday. Shares, which trade over-the-counter, were down about 31% on Tuesday.
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