P.M. BRIEFING : Southland Corp. to Skip Payment
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DALLAS — Debt-ridden Southland Corp., owner of about 6,900 7-Eleven convenience stores, today announced a sweetened restructuring proposal for its bondholders and said it will miss an interest payment due Friday on its public debt.
The revised restructuring, a key condition of the troubled company’s agreement to sell a controlling interest to its Japan-based partners, would also reduce the stake held by Southland’s founding Thompson family.
Southland has been struggling to continue making payments on the billions of dollars in debt it incurred in 1987 when the Thompson family took the company private in a $4.9-billion leveraged buyout.
In March, it agreed to sell a controlling interest to its Japanese partners, Ito-Yokado Co. Ltd. and 7-Eleven Japan Co. Ltd., for $400 million and the assumption of debt.
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