Crystal Financial Anchors DIP Tranche A-1 Loan in Bon-Ton Bankruptcy
Choate represented Crystal Financial as Tranche A-1 Documentation Agent and an A-1 lender to Bon-Ton Stores, Inc. and its affiliated subsidiaries in its Chapter 11 bankruptcy. Collectively, the Senior Secured, Super-priority Debtor-in-Possession Loan and Security Agreement totaled an aggregate principal amount of up to $725 million.
Along with Tranche A Agents Bank of America and Wells Fargo, Crystal worked in conjunction with the Debtors to identify potential going concern buyers and liquidators interested in purchasing the Debtors, which process culminated in the sale of the Debtors to a joint venture comprised of the holders of the Debtors' 8.0% Second Lien Secured Notes due 2021 and Great American Group, LLC and Tiger Capital Group, LLC.
The sale closed on April 19, 2018, and resulted in the repayment in full of the DIP, including all interest and prepayments premiums, plus a likely recovery for certain of the Debtors' unsecured creditors.