The intricacies involved in the Orchard Supply bankruptcy provide guidance to debtors and creditors about the need to balance the competing interest of lenders, purchasers and stakeholders when it comes to debtor-in-possession financing.
Lowe’s has entered into an asset purchase agreement with Orchard Supply Hardware, which filed Chapter 11, in a transaction expected to be consummated under a Section 363 subject to an auction and court approval.
Orchard Supply Hardware said based on discussions with the company’s term loan holders, the previous date to reach an agreement with respect to a transaction to address the company’s capital structure has been extended to June 30, 2013.
The Wall Street Journal reported that Orchard Supply Hardware Stores has hired restructuring attorneys at DLA Piper and financial advisor FTI consulting as it readies for a term loan restructuring deadline of May 1, 2013.