Homeland Stores, Oklahoma City, last week began its financial restructuring, slated to be finished by midsummer. Its $95 million of senior secured bonds outstanding will be canceled, and bondholders will get $60 million face amount of new senior subordinated notes and $1.5 million cash. Bondholders and Homeland's general unsecured creditors will get about 60% and 35%, respectively, of the revamped company's equity. Homeland's existing equity holders will get 5% of the new equity plus options to buy another 5%. To aid the restructuring, which includes union-backed collective bargaining agreement modifications, Homeland's bank group, with about 80% of its outstanding senior secured bonds, has furnished up to $27 million of working capital financing. The lending facility, scheduled for final approval May 31, is expected to allow Homeland to operate normally as it reorganizes, including payment of employee and vendor post-petition claims. Homeland plans to shut two stores, in Tulsa, Okla., and Amarillo, Texas, and going forward expects to have 65 stores and 4,250 employees.