OFFICEMAX FILES SUIT AGAINST KMART
NEW YORK — Kmart Corp. was hit by a lawsuit Friday by a former subsidiary contesting Kmart’s demand to be reimbursed for a portion of the $681 million owed certain real estate bondholders.
OfficeMax said Friday that Kmart is demanding $3.7 million, which is OfficeMax’s share of the indebtedness recently called by Kmart bondholders.
OfficeMax is responsible for $10.6 million of the real estate bond obligation. However, Kmart has negotiated agreements with a majority of its real estate bondholders to cancel the “put” feature of the bonds. The put would have allowed bondholders to demand immediate payment once the notes were downgraded to below investment grade.