Sears gets green light for bankruptcy loan
Sears Holdings Corp. has received approval for funding that will help keep it up and running while in bankruptcy.
The embattled retailer announced that the U.S. Bankruptcy Court for the Southern District of New York granted interim approval of all the company's first day motions related to its voluntary Chapter 11 restructuring. The court gave Sears authorization to access its $300 million in senior priming debtor-in-possession financing from its senior secured asset-based revolving lenders. The retailer also received authorization to continue paying employee wages and benefits, and to honor member programs including warranties and promotions.
Sears filed for Chapter 11 bankruptcy protection on Monday, Oct. 15.
"The Court's approval of our First Day motions is an important step forward in our financial restructuring process that will allow the company to continue operating in the normal course and providing our customers and members with trusted service," said Robert A. Riecker, CFO. "Our stores, online and mobile platforms, and related businesses are open and we continue to offer our customers and members the brands and products they want. We look forward to continuing to engage in productive discussions with our creditors and other stakeholders to pursue a plan of reorganization as expeditiously as possible."
The embattled retailer announced that the U.S. Bankruptcy Court for the Southern District of New York granted interim approval of all the company's first day motions related to its voluntary Chapter 11 restructuring. The court gave Sears authorization to access its $300 million in senior priming debtor-in-possession financing from its senior secured asset-based revolving lenders. The retailer also received authorization to continue paying employee wages and benefits, and to honor member programs including warranties and promotions.
Sears filed for Chapter 11 bankruptcy protection on Monday, Oct. 15.
"The Court's approval of our First Day motions is an important step forward in our financial restructuring process that will allow the company to continue operating in the normal course and providing our customers and members with trusted service," said Robert A. Riecker, CFO. "Our stores, online and mobile platforms, and related businesses are open and we continue to offer our customers and members the brands and products they want. We look forward to continuing to engage in productive discussions with our creditors and other stakeholders to pursue a plan of reorganization as expeditiously as possible."