Home / Knowledge / News / Apparel/Garments / Court OKs Eddie Bauer DIP loan facility
Court OKs Eddie Bauer DIP loan facility
09
Jul '09
Eddie Bauer Holdings Inc announced that it has received approval from the U.S. Bankruptcy Court in Delaware of a number of key motions further facilitating the Company's ability to continue normal operations as it moves forward with its sale process.

Among other things, the Company received final authorization to utilize its $100 million Debtor-in-Possession (DIP) loan facility from its existing revolving credit lenders, Bank of America N.A., GE Capital Corporation and CIT Group/Business Credit Inc, and to use its cash collateral to meet certain ongoing obligations to employees, customers, suppliers and other key constituents.

The Company also received final Court approval to continue to pay its employees in the usual manner, including prepetition wages and salaries, and to pay independent contractor fees and expenses.

The Court had previously granted, in a hearing on June 18, 2009, interim approval for the Company to access $90 million of the $100 million DIP facility, along with interim or final approval of other relief requested by the Company in its "First Day" motions.

"With the Court's rulings, we continue on track to conduct business as usual as we proceed with our sale process," said Neil Fiske, President and Chief Executive Officer. "The new DIP financing provides liquidity to meet our ongoing obligations, and we appreciate the strong support we have seen from our employees, customers and suppliers. We remain confident that we are on the right path to put Eddie Bauer in a stronger financial position for the future."

On June 17, 2009, the Company announced that it had initiated voluntary proceedings under Chapter 11 in the United States and the CCAA in Canada in order to pursue a sale of the business. The case is pending before the Honorable Mary F. Walrath in the U.S. Bankruptcy Court for the District of Delaware.

The Company has entered into an asset purchase or "stalking horse" agreement with an affiliate of CCMP Capital Advisors, LLC ("CCMP Capital") to buy the Company's assets, subject to an auction and Bankruptcy Court approval. The Court has set July 16, 2009 as the auction date, with a hearing to be held on July 22, 2009 to approve a sale.

Eddie Bauer Holdings Inc

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search