Penn Traffic in Debt Agreement

Penn Traffic here has entered into a forbearance agreement with its lenders after what it termed a technical default on its loans. The retailer, which has been required to collateralize about $35.8 million in letter of credit obligations, also engaged a crisis management firm, Conway Del Genio Gries & Co., and installed a representative of that firm, Ronald F. Stengel, as its chief

SYRACUSE, N.Y. — Penn Traffic here has entered into a forbearance agreement with its lenders after what it termed a “technical default” on its loans.

The retailer, which has been required to collateralize about $35.8 million in letter of credit obligations, also engaged a crisis management firm, Conway Del Genio Gries & Co., and installed a representative of that firm, Ronald F. Stengel, as its chief restructuring officer.

Under the forbearance agreement, lenders le

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