Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 8, 1997, Winnipeg, Manitoba Frets september Eaton future depends on vote today creditors could propel Chain into bankruptcy by Rob Ferguson Canadian press Toronto a six month Effort to whip Eaton into financial shape comes Down to the crunch suppliers and other creditors owed about million hold the Trou bled retailers future in their hands As they vote on its restructuring a thumb Down from a majority of the debt holders in any one class of creditors could be enough to push the 127yearold department store Chain into this is says Stan Ley an Ottawa lawyer specializing in Bank but he doubts any Credi tors would want to torpedo the plan for a simple reason All have been promised repayment in full through upfront Cash payments and interest bearing notes due next i believe it will be worked Kershman others Arent so the last group of creditors negotiating to get More Cash up front were landlords at malls where Eaton has closed or plans to close they have less to lose and there angry because its going to be Tough to fill empty Eaton stores and keep other there kind of a wild says retail Industry analyst John Winter of John Winter associates in Toron its not Over until the last fat Man Eaton has been operating under bankruptcy Protection since late when the secretive family owned company stunned the country by revealing it was deep in the red after years of sagging the court ordered Protection period which gave Eaton a Grace period for paying its overdue Bills expires this in the Eaton has closed a handful of its 85 plans to close More and has spared others from the scrap that will leave 69 Cash to pay the Bills has been raised by Selling real estate and splitting pension surpluses with More May come from sell ing shares in Eaton credit card the company has also obtained millions of dollars in credit to keep itself in is looking for an equity partner to pour in More Cash and hired a non Eaton As former Hudson Bay chief executive George Kosich was lured away from his impending retirement to Lead known for his flair for successful merchandise has promised More aggressive promotions and million in store renovations and putting 35 per cent More merchandise on store but even if the restructuring plan is it Doest mean Success is Winter they now have to get past a much More demand ing test the the Prospect of future troubles worries some sup pliers whole been waiting Many months for there is said one Man who requested its like you telling me you Promise to pay me a million dollars in one How do i know for sure youre going to have it decision time nears for Laurentian Bank by Allan Swift Canadian press Montreal Das smallest the is on the verge of a shakeup and May be snapped up by another Bank or insurance executives say a decision is three months after its majority owner Desjardin Laurentian financial decided to put Laurentian Bank up for Sale or seek other so far Only two suitors have emerged publicly Industrial Alliance life insurance said it would be interested in the Banks Bee while Mon trea based National Bank has expressed interest in assets outside Quebec although the big Toronto based chartered Banks talk consolidation and say they Arent big an analyst said its unlikely any would run the political risk of buy ing a Montreal Bank and closing its head the nationalistic Pes Jardins credit Union which owns per allow such a thing to happen to its subsidiary anyway similar risks face its rival the National which would Dave to Bear the costs and Public relations headaches of closing Laurentian head office As Well As Bank branches adjacent to its Laurentian Bank is prof but not As much As its Blu Chip big Canadas big Banks have just finished reporting record third Quarter earnings and together will easily smash last years Annu Al record after the Laurentian Bank announced last month a Mere profit in the third the Cana Dian Bond rating service downgraded its Outlook to negative from return on equity in the Quarter was 12 per compared with an average 18 per cent for the big Banks Bank of to and National the Agency said the earn Ings Gap continues to one reason is that ians lending activities Are concentrated in Quebec while the Quebec Economy continues to grow along with the Overall trend in North Agency Ana Lyst Maria Titano Quebec performance is partly due to the continuing unstable political and business a lot of suitors could be interested in a Well run Bank with 247 More than half in Canadian professional custom window door installations Segia Lingin Irewen window i Qaqi pro duet poll 9813850 from Thompson to Brandon new Low Futar Long i minute 4 let the meeting come to think video conferencing plus mealtime multimedia display plus simultaneous document pc data video system Mem new quartet function lets you View 4 full motion video pictures from 4 different Sites your the Tran com 3000 work group system offers trilogy Multi Point conference capability and 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