Bed Bath & Beyond Inc. faced a much worse financial situation ahead of its bankruptcy filing than is typical for companies facing an imminent chapter 11.
The home-goods retailer sought a $54 million emergency loan on Friday from all of its lenders to meet payroll and other expenses, court papers show, before filing for bankruptcy protection on Sunday. It then sought and received approval in bankruptcy court on Monday to borrow an additional $40 million from lender Sixth Street Partners to help meet the costs of the company’s planned going-out-of-business sale while it looks for a last-minute buyer.
“Last week the company returned to an overadvance position” on its bank loans, so its lenders got together and signed off on the new $54 million loan, Bed Bath & Beyond lawyer Emily Geier said Monday at the company’s debut appearance in the U.S. Bankruptcy Court in Newark, N.J.
Source: https://www.wsj.com/articles/bed-bath-beyond-took-out-emergency-loan-on-eve-of-bankruptcy-6b406773?siteid=yhoof2&yptr=yahoo