Syms Adds Rights Offering to Exit Plan, Wins Support
Syms Corp. said that it struck a deal that will bring peace to its chapter 11 case and propel the defunct discount retailer toward a bankruptcy exit with a $25 million equity rights offering providing for the exit, Dow Jones Newswires reported yesterday. Under the revamped proposal, which will update the company's previous plan to reorganize around its real estate holdings, all allowed claims against Syms will be paid in full, "pursuant to certain agreed upon time frames." Allowed trade and other vendor claims against subsidiary Filene's Basement LLC--whose retail operations, like Syms's, were shuttered in the wake of the November bankruptcy filing--will also be paid in full. Holders of allowed unguaranteed lease-rejection claims against Filene's will see a 75 percent recovery.