Hartmarx Corp.(fka HTMXQ)

[aries4747]

HTMXQ to bank $11.8 million for terminating lease.

http://www.kccllc.net/documents/0902046/0902046090501000000000001.pdf

DISCUSSION
1. In the Lease Motion, the Debtors seek the Court’s approval of a Lease
Termination Agreement between the Debtors and 666 Fifth Retail Associates, LLC (the
“Landlord”). Under the Lease Termination Agreement, the Debtors would sell to the
Landlord their rights in a long-term lease agreement for nonresidential real property
rented by Debtor HMX Luxury, Inc., at 666 Fifth Avenue, New York, New York. The
existing lease agreement is guaranteed by HMX Luxury’s parent and co-debtor, Hartmarx
Corporation. Under the proposed Termination Agreement, the Debtors would terminate
their interest in the lease in exchange for (among other things) a payment of $11,800,000, the release of a $2.06 million letter of credit, and up to 60 days’ free rent.