Brookstone Wins Court Approval for DIP to Pay Off Wells Fargo
Bloomberg reported that luxury gadget retailer Brookstone won bankruptcy court approval of a financing package to help fund operations and pay off some debt as it pursues a sale to Spencer Spirit Holdings.
Bloomberg said the bankruptcy court granted the company interim approval to borrow about $91.3 million of $96.3 million in DIP financing being provided by some its noteholders.
According to a related 8-K filing, the borrowings will be used for working capital purposes and to pay off a prepetition senior secured credit facility with a lender group led by Wells Fargo as administrative agent, collateral agent and term loan agent. Bankruptcy court documents showed that amount outstanding at the time of the bankruptcy filing was $51.1 million.
To read the entire Bloomberg article, click here.
Previously on abf: Brookstone Files Chapter 11; Owes Wells Fargo Group $51MM, April 4, 2014