Court Approves All of Hartmarx Corporation's 'First Day Motions'
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-- Interim Approval Granted for $160 Million DIP Facility -- Court Authorizes Continued Payment of Employee Wages and Benefits -- Hartmarx Authorized to Pay for Post-Petition Goods and Services CHICAGO, Jan. 28 /PRNewswire-FirstCall/ -- Hartmarx Corporation (HTMXQ), announced today that the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, has granted the relief the Company requested in a series of court filings known as "First Day Motions." The action follows Friday's announcement by Hartmarx that it had filed voluntary bankruptcy petitions under Chapter 11 of the U.S. Bankruptcy Code. On January 23, 2009, as part of its voluntary filing to reorganize under Chapter 11, Hartmarx filed First Day Motions to allow the Company to conduct business as usual with minimal disruption to its employees, customers and suppliers. The Court granted interim approval for the Company to access its $160 million debtor-in-possession ("DIP") credit facility. Among other things, the Court also authorized the Company to: -- Continue payment of employee salaries, employee benefits and business expense reimbursements without interruption; -- Continue to use existing cash management systems and maintain existing bank accounts; -- Continue to pay customs duties, freight companies, taxes, utilities and other related obligations; and -- Pay for post-petition goods and services received by the Company upon terms and conditions acceptable to the Company. Hartmarx's Chapter 11 case in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, has been assigned the number 09-02046, the Honorable Judge Black presiding. Information about the bankruptcy case, including orders entered and filings can be found at http://www.kccllc.net/hartmarx. Hartmarx produces and markets business, casual and golf apparel under its own brands, including Hart Schaffner Marx, Hickey-Freeman, Palm Beach, Coppley, Monarchy, Manchester Escapes, Society Brand, Racquet Club, Naturalife, Pusser's of the West Indies, Brannoch, Sansabelt, Exclusively Misook, Barrie Pace, Eye, Christopher Blue, Worn, One Girl Who... and b.chyll. In addition, the Company has certain exclusive rights under licensing agreements to market selected products under a number of premier brands such as Austin Reed, Burberry men's tailored clothing, Ted Baker, Bobby Jones, Jack Nicklaus, Claiborne, Pierre Cardin, Lyle & Scott, Golden Bear, Jag and Dr. Martens. The Company's broad range of distribution channels includes fine specialty and leading department stores, value-oriented retailers and direct mail catalogs. The comments set forth above contain forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "should" or "will" or the negatives thereof or other comparable terminology. Forward-looking statements are not guarantees as actual results could differ materially from those expressed or implied in such forward-looking statements. The statements could be significantly impacted by such factors as the ability of the Company to continue as a going concern, the ability of the Company to operate pursuant to the terms and conditions of its debtor-in-possession financing, the ability of the Company to pursue and consummate strategic alternatives under the chapter 11 cases, including, but not limited to, the sale of some or all of the Company's assets, the Company's ability to obtain court approval with respect to motions in the chapter 11 proceedings, the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases, risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the bankruptcy cases to chapter 7 cases, the ability of the Company to obtain and maintain normal terms with vendors and service providers, the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on the Company's liquidity or results of operations, the level of consumer spending for men's and women's apparel, the prevailing retail environment, the Company's relationships with its employees, suppliers, customers, licensors and licensees, actions of competitors that may impact the Company's business, and the impact of unforeseen economic changes, such as interest rates, or in other external economic and political factors over which the Company has no control. The reader is also directed to the Company's periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company's results of operations and financial condition. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various pre-petition liabilities and common stock. No assurance can be given as to what values, if any, will be ascribed in the chapter 11 proceeding to each of these constituencies. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities. SOURCE Hartmarx Corporation Taras R. Proczko, +1-312-372-6300
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