Footstar, Inc. reported that it has received a waiver and extension until February 27, 2004 of the requirement to provide financial statements to the syndicate of banks, led by Fleet National Bank, that provide the Company's $345 million senior secured credit facility.
The Company is in negotiations with its lending syndicate with respect to obtaining necessary liquidity. The Company has also initiated discussions with additional financing sources. In addition, the Company is exploring the possibility of a sale of certain of its assets to obtain liquidity. If none of these alternatives is successful in the near term, the Company will be required to file under Chapter 11 of the U.S. Bankruptcy Code in order to obtain necessary liquidity and restructure its debt.
