San Jose Calif. -- Orchard Supply, which sought bankruptcy protection earlier this year, has won court approval of as much as $176.3 million in bankruptcy financing, according to a report by Bloomberg.
The U.S. bankruptcy court approved the loans that will help fund operations as Orchard pursues a sale of at least 60 of its 91 stores. Lowe’s Cos. has the lead offer of $205 million.
“I believe the aggregate facility is necessary for the company” and gives suppliers confidence the company will have adequate liquidity to continue going forward, said Orchard Supply CFO Chris Newman.
The Lowe’s bid will be tested at an Aug. 14 auction, followed by an Aug. 20 hearing to approve the auction winner, according to Bloomberg, which cited court documents. Other potential buyers must submit bids to compete against Lowe’s by Aug. 9.