(3)	LIABILITIES SUBJECT TO COMPROMISE

As a result of the filing of the Bankruptcy cases on May 17, 2017, we have classified unsecured prepetition liabilities that are expected to be impaired pursuant to the Prepackaged Plan as liabilities subject to compromise in our condensed consolidated balance sheet at June 30, 2017. Pre-petition liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. If there was uncertainty at the time about whether a secured claim was under-secured, or would be impaired under the Prepackaged Plan, the entire amount of the claim was included in liabilities subject to compromise. The amounts classified at June 30, 2017 as liabilities subject to compromise represent the company’s current estimate of claims expected to be allowed under the Prepackaged Plan as of June 30, 2017.

The company’s obligations under the Revolving Credit Facility, Senior Notes, Term Loan Facility and sale-leaseback agreements have been affected by the Prepackaged Plan which has been confirmed by the Bankruptcy Court. As such, the outstanding balances of these debt instruments, related accrued pre-petition interest and claims related to the rejection of sale-leaseback agreements and claims associated with the make-whole provisions included in the senior notes have been classified as liabilities subject to compromise in the condensed consolidated balance sheet as of June 30, 2017.

Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities were stayed during the pendency of the bankruptcy proceeding. Although payment of pre-petition claims is generally not permitted, the Bankruptcy Court approved the Debtors’ “first day” motions allowing, among other things, the company to pay prepetition employee wages and benefits without interruption, maintain its insurance programs, utilize its current cash management system, and pay undisputed prepetition obligations owed to its vendors and trade creditors in the ordinary course of business. As a result of this approval, the company continues to pay certain pre-petition claims in designated categories and subject to certain terms and conditions in the ordinary course of business, and we have not classified these liabilities as subject to compromise in the condensed consolidated balance sheet as of June 30, 2017. This is designed to preserve the value of the company’s businesses and assets. With respect to pre-petition claims, the company notified all known claimants of the deadline to file a proof of claim with the Court.

The company has been paying and intends to continue to pay post-petition claims in the ordinary course of business.

The following table reflects pre-petition liabilities that are subject to compromise included in our Condensed Consolidated Balance Sheet as of June 30, 2017. See Note (8) - “Indebtedness” for a specific discussion on the debt instruments and related balances subject to compromise:

(In thousands)	June 30, 2017
Revolving Credit Facility	$	600,000
Term Loan Facility		300,000
September 2013 senior unsecured notes		500,000
August 2011 senior unsecured notes		165,000
September 2010 senior unsecured notes		382,500
Accrued interest payable		23,736
Make-whole provision - Senior notes		94,726
Lessor claims - sale leaseback agreements		323,595
Liabilities subject to compromise	$	2,389,557