Penn Traffic Gets $10 Million in Equity Financing

ELLIOT ZWIEBACH

SYRACUSE, N.Y. — Penn Traffic Co. here said last week it has closed a private placement of $10 million in new equity financing with three of its largest common shareholders. The company said it will use the proceeds to fund strategies for enhancing shareholder value and improving the company’s operational and financial performance. The placement was made by Bay Harbour Management, CR Intrinsic Investors and King Street Capital Management though the purchase of a new series of Penn Traffic convertible preferred stock, which is convertible any time after the first anniversary of the closing at $16.12 per share, which is equal to Penn Traffic’s 45-day weighted average trading price.

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