P. M. BRIEFING : Campeau Won’t Pay Interest Due
Campeau Corp., whose U.S. retailing units are operating under bankruptcy protection, said today that it won’t pay the interest due on two series of debentures and that it will try to negotiate a deferral of the payment.
Campeau announced in a brief statement that it will not make the interest payment due March 31 on its 7 1/2% subordinated convertible debentures, Series A, and its 7% convertible subordinated debentures.
The debt-ridden retail and real estate corporation said it “intends to pursue discussions towards obtaining a deferral of the payment.”
Analysts said Campeau’s decision not to pay the loan interest is a tactical move in negotiating with its lenders a master debt-restructuring plan.
The amount due was not disclosed, and a Campeau spokesman could not be reached immediately for details.
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