ALCO Stores Commences Voluntary Chapter 11 Proceeding - Quick Facts

(RTTNews) - ALCO Stores, Inc. (ALCS) said the company and its subsidiary, ALCO Holdings, Limited Liability Company, filed on October 12, voluntary petitions for relief in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, seeking relief under the provisions of Chapter 11 of Title 11 of the United States Code.

The debtors expect to continue to operate their businesses as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court.

The company said the agent and lenders in its debtor-in-possession credit agreement have agreed to provide a senior secured revolving credit facility in an aggregate principal amount not to exceed $110 million and a senior secured term loan in the original principal amount of $12,675,000.

This is in order to, among other things, repay certain pre-petition obligations, fund the debtors' chapter 11 cases, and provide working capital for the debtors during the pendency of the Chapter 11 cases.

The stock, which closed at $1.65 on Friday, tumbled over 70 percent in pre-market trading.