Court approves $700 million DIP for LNT
June 3, 2008,
Clifton, N.J. – Linens ’n Things announced yesterday that the U.S. Bankruptcy Court in Delaware has given final approval to $700 million in debtor-in-possession financing from GE Capital Corp.
The approval of the DIP facility ensures that LNT’s business and stores will continue to operate without interruption, the company said, adding it will allow the retailer to “normalize” relations with vendors heading into the back-to-school season.
Linens ’n Things filed Chapter 11 on May 2. Interim approval of the DIP financing was granted on the same day.
As of the close of business on May 29, the company had excess availability of $140.7 million under the DIP facility. This amount reflects an increase of $44.1 million over the excess availability projected by the company for the end of May in the DIP financing budget referred to in the order granting the interim approval of the DIP financing.
The company also announced that approximately 83% of the dollar amount of all product orders from domestic vendors for May or June delivery have been or are being shipped on terms.