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PENN TRAFFIC CREDIT TERMS ARE EASED UNTIL APRIL 1999

SYRACUSE, N.Y. -- Penn Traffic Co. here said last week it has been given a reprieve until April 1, 1999, to comply with financial covenants in its revolving credit facility. ial results last week for the quarter and the first half, which showed declining sales and operating cash flow.Penn Traffic said its senior bank lenders amended the terms of its $250 million revolving credit facility so the company

SYRACUSE, N.Y. -- Penn Traffic Co. here said last week it has been given a reprieve until April 1, 1999, to comply with financial covenants in its revolving credit facility.

ial results last week for the quarter and the first half, which showed declining sales and operating cash flow.

Penn Traffic said its senior bank lenders amended the terms of its $250 million revolving credit facility so the company will not be required to comply with certain covenants for eight months.

As previously disclosed, Penn Traffic is seeking a new chief executive officer following the resignation last month of Phil Hawkins; it also said in June it is hoping to sell its Pennsylvania-based Bi-Lo stores.

The company said last week it has completed the sale of one Bi-Lo and one Big Bear in Columbus, Ohio, since the end of the second quarter and closed eight under-performing Bi-Lo units during August. Penn Traffic said it will record an as-yet undetermined charge related to these actions in the third quarter.

For the four weeks ended Aug. 29 the company said same-store sales fell 3.7%.

Operating cash flow fell 37.8% for the quarter to $28 million, or 3.8% of sales, compared with $45 million, or 5.8% of sales, a year ago; and 30.5% for the half to $58.2 million, or 4% of sales, compared with $83.7 million, or 5.5% of sales, a year ago.