The Bon-Ton Stores, Inc. announced that it has entered into forbearance agreements with its ABL Credit Agreement lenders and an ad hoc group of holders of approximately 75% in aggregate principal amount of the Company's 8.0% Second Lien Secured Notes due 2021. 

According to an 8K filing, the company, the Issuer, and the other obligors under the Second Amended and Restated Loan and Security Agreement, dated as of March 21, 2011, entered into a Forbearance Agreement with lenders  Bank of America, N.A., as agent, and Bank of America and Wells Fargo Bank, National Association, as co-collateral agents.  Pursuant to the Loan Forbearance Agreement, the Lender Parties have agreed, until January 26, 2018, to forbear from taking any action to enforce or exercise any rights and remedies under the Loan and Security Agreement with respect to the Specified Default. 

The Loan Forbearance Agreement is subject to customary terms and conditions.  The forbearance period under the Loan Forbearance Agreement will be automatically extended to February 4, 2018 if the forbearance period under the Second Lien Forbearance Agreement is extended to such date, and may be further extended with the consent of the parties.Under the terms of the Forbearance Agreements, the ABL Credit Agreement lenders and the forbearing holders of the 2L Notes have agreed to forbear from exercising any and all remedies available to them as a result of the Company not making the interest payment due on the Notes on December 15, 2017, subject to customary terms and conditions. The Forbearance Agreements will expire on January 26, 2018, unless further extended by the parties.  The forbearance period under the ABL forbearance agreement will be automatically extended to February 4, 2018 if the forbearing holders of the 2L Notes agree to extend to such date.

As previously disclosed, the Company is engaged in ongoing discussions with its debt holders in an effort to strengthen its capital structure to support the business.