The U.S. Bankruptcy Court for the Southern District of New York has given final approval for Aéropostale, a specialty retailer of casual apparel for young women and men, to access $160 million in debtor in-possession financing provided by Crystal Financial.
The court previously gave interim approval for the DIP financing agreement on May 5, 2016. This financing, combined with Aéropostale’s operating cash flow, will allow the company to meet its financial commitments and enable it to focus on completing its restructuring process, confirming a plan of reorganization and emergence from Chapter 11 during Q3/16.
“We are pleased that the court has approved our DIP financing,” said Julian Geiger, CEO. “We are looking forward to emerging from this process as a leaner, more efficient business and firmly believe that we will be well-positioned to compete and succeed in today’s retail environment.”
As announced on May 4, 2016, Aéropostale filed voluntary petitions under Chapter 11 in an effort to optimize its store footprint, renegotiate burdensome contracts, resolve its ongoing disputes with Sycamore Partners and achieve long-term financial stability.
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