OfficeMax Inc. (NYSE:OMX) announced on Friday that all of its liabilities associated with Lehman Brothers-backed timer notes are officially gone, allowing the company to finally report a gain of $671.1 million and sending its small cap stock up.
According to Dow Jones Newswires, OfficeMax released a statement in which it discussed its bankruptcy status, saying that the court has given an order to resolve all claims related to the notes, which were backed by Lehman Brothers.
"We are very pleased to resolve this matter," OfficeMax president and chief executive Ravi Saligram said in the release. "We anticipate that extinguishment of the Lehman nonrecourse liability will help to create greater clarity for our investors, as our efforts to simplify the balance sheet continue."
The news bodes well for OfficeMax, which is still the third-largest office supply retail store behind Staples and Office Depot, as it has struggled to raise its sales for nearly four years. This, however, appears to be changing, which is reflected in the company's stock.
As of 4:03 p.m. on Friday, September 14, the company's stock was up 14.6 percent to $8.15.