GANTO’S CHAPTER 11 PLAN OK’D BY COURT
NEW YORK — A bankruptcy court Tuesday confirmed the Chapter 11 reorganization plan of Gantos Inc., a 114-unit women’s apparel retailer based in Grand Rapids, Mich.
The company said it expects to emerge from Chapter 11 in late March or early April and has received a commitment for $40 million in exit financing from a bank group led by National Westminster Bank.
The plan of reorganization, which received strong support from creditors, will pay unsecured creditors 100 cents on the dollar in cash and equity. Current Gantos shareholders will receive the remaining 35 percent of the new shares.
The planned payout is based upon Gantos’ $62.5 million enterprise value. Gantos filed for Chapter 11 in November 1993.