Macy's reorganization
This article was originally published in The Rose Sheet
Executive Summary
Federal Department Stores revises reorganization plan for R. H. Macy & Co. to increase the total proposed payout to $3.83 bil. from the $3.51 bil. outlined in a proposal submitted to the court appointed mediator April 29 ("The Rose Sheet" May 9, p. 11). Federated's move is intended to win favor among Macy's creditors. Federated has said since January that it is interested in acquiring Macy's ("The Rose Sheet" Jan. 10, p. 8). Also, Macy's slightly modified its reorganization plan with an "enhanced" rights offering for unsecured creditors. Macy's bondholders additionally have submitted a proposal, but it is not expected to succeed