-- Interim Approval Granted for $160 Million DIP Facility
-- Court Authorizes Continued Payment of Employee Wages and Benefits
-- Hartmarx Authorized to Pay for Post-Petition Goods and Services
CHICAGO, Jan. 28 /PRNewswire-FirstCall/ -- Hartmarx Corporation (HTMXQ), announced today that the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, has granted the relief the Company requested in a series of court filings known as 'First Day Motions.' The action follows Friday's announcement by Hartmarx that it had filed voluntary bankruptcy petitions under Chapter 11 of the U.S. Bankruptcy Code.
On January 23, 2009, as part of its voluntary filing to reorganize under Chapter 11, Hartmarx filed First Day Motions to allow the Company to conduct business as usual with minimal disruption to its employees, customers and suppliers. The Court granted interim approval for the Company to access its $160 million debtor-in-possession ('DIP') credit facility. Among other things, the Court also authorized the Company to:
- Continue payment of employee salaries, employee benefits and business expense reimbursements without interruption;
- Continue to use existing cash management systems and maintain existing bank accounts;
- Continue to pay customs duties, freight companies, taxes, utilities and other related obligations; and
- Pay for post-petition goods and services received by the Company upon terms and conditions acceptable to the Company.
Hartmarx's Chapter 11 case in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, has been assigned the number 09-02046, the Honorable Judge Black presiding. Information about the bankruptcy case, including orders entered and filings can be found at http://www.kccllc.net/hartmarx.
Hartmarx produces and markets business, casual and golf apparel under its own brands, including Hart Schaffner Marx, Hickey-Freeman, Palm Beach, Coppley, Monarchy, Manchester Escapes, Society Brand, Racquet Club, Naturalife, Pusser's of the West Indies, Brannoch, Sansabelt, Exclusively Misook, Barrie Pace, Eye, Christopher Blue, Worn, One Girl Who... and b.chyll.