Bauer said it has received bankruptcy court approval for the company to access
the $90 million it requested of its new $100 million Debtor-in-Possession (DIP)
facility from its existing revolving credit lenders, Bank of America, N.A., GE
Capital Corporation and CIT Group/Business Credit, Inc. The DIP facility is
expected to provide the company with ample liquidity to meet its ongoing
obligations during the sale process.
A hearing
for final approval of the full DIP facility has been scheduled for July 7, 2009.
Among
other things, the Court also granted interim or final approval of the company's
requests to:
* Pay
vendors under normal terms for goods and services provided on or after the
petition date of June 17, 2009;
* Pay its
employees in the usual manner and to continue without disruption their primary
benefits; and
*
Continue the company's customer programs including honoring its gift cards and
certificates, returns, its loyalty programs and its credit card program.
Neil
Fiske, President and CEO, said, “We are pleased that this process has
gotten off to a smooth start with the approval of these important First Day
Motions. We look forward to continuing normal business operations and serving
our customers as usual, as we continue with this process to put Eddie Bauer in
a financially stronger and better position for the future.”
As
announced on June 17th, the company has entered into a “stalking
horse” agreement with an affiliate of CCMP Capital Advisors LLC, under
which CCMP Capital proposes to buy the Eddie Bauer business, subject to an
auction and Bankruptcy Court approval, for $202 million in cash, with working
capital and similar adjustments. CCMP Capital, a global private equity firm
with significant experience in the retail and consumer sectors, intends to
operate the business as a going concern with substantially less debt and plans
to keep the majority of stores open and retain the majority of the employees.
The company anticipates completing the sale process in 60 days or less.
