OKLAHOMA CITY -- Homeland Stores here said it expects to emerge from Chapter 11 bankruptcy protection in the first week of August.
way for its exit from Chapter 11. The plan previously had been approved by the chain's creditors, stockholders and labor unions. Homeland operates 65 stores in Oklahoma, the Texas panhandle and southern Kansas.
Under the restructuring, $95 million of Homeland's senior secured bonds outstanding plus accrued interest will be canceled. Bondholders will receive $60 million face amount of new unsecured senior subordinated notes due to mature in 2003 plus $1.5 million in cash. In addition, bondholders will get about 60% of the equity of the reorganized company. General unsecured creditors will receive approximately 35% of the equity, and Homeland's existing equity holders will get the remaining 5% of the new equity plus five-year warrants to purchase another 5%.
Homeland also said it will attempt to list the equity on the Nasdaq National Market System or another exchange.
