Federated-Allied to Unveil Creditors Plan: After months...
From Times Staff and Wire Reports
Federated-Allied to Unveil Creditors Plan: After months of delays, the department store empire said it will offer a plan today to pay off its $7.7 billion in debt, ending the largest reorganization case in retailing history. The firms’ 50,750 creditors, ranging from underwear makers to the junk bond buyers who financed Campeau Corp.’s takeover of Federated Department Stores Inc. and Allied Stores Corp., will then review the proposal to decide whether to accept or reject it. The chains’ fall into Chapter 11 reorganization--along with the fall of Bloomingdale’s and other well-known retailers--jolted the industry 15 1/2 months ago.
