Ames looks to emerge in 2002

By Staff -- Home Textiles Today, 1/14/2002 12:00:00 AM

Rocky Hill, CN — Ames Department Stores and the statutory Creditors Committee in its Chapter 11 case said today that they are developing a consensual plan of reorganization under which Ames would emerge from bankruptcy this year. The company also said that it expects all existing equity will be cancelled as part of its restructuring.

In addition, Ames said it has received of a proposal from GE Capital to provide exit financing. Under the current stages of planning, vendors that provide trade credit to the company will receive a junior lien after Ames emerges from reorganization.