In an update regarding its credit agreement with Salus Capital Partners, Hampshire Group said its lender has declined to extend its forbearance agreement and, accordingly, the company is in default of the agreement.
Anna’s Linens filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. The company negotiated a DIP financing arrangement with Salus Capital, the company’s pre-petition lender.
Salus Capital Partners has asked the Delaware bankruptcy court judge to convert RadioShack’s bankruptcy cases from Chapter 11 proceedings to Chapter 7.
About 20 of Salus Capital’s 50 workers reportedly were dismissed, as HRG Group cut staffing at the unit that suffered losses on loans to RadioShack.
Andy Moser, the co-founder and CEO of Salus Capital, reportedly left the firm following losses from its $250 million loan to RadioShack, according to four people familiar with the situation.
Salus Capital was selected as the Lending Firm of the Year, and Kyle C. Shonak, EVP of Special Assets, was named Distressed M&A Dealmaker of the Year by The M&A Advisor.
Salus Capital Partners announced that the restructuring of the John Forsyth Shirt Company was named the M&A Advisor Retail Manufacturing/Distribution Deal of the Year.
RadioShack said it received notice from Salus Capital Partners claiming covenant breaches under its $250 million ABL facility provided by Salus and Cerberus Business Finance. RadioShack believes claims are wrong and self-serving.