Finish Line Inc. said Thursday its lenders will extend the termination
date for financing the retailer's proposed $1.5 billion takeover of
Genesco Inc. UBS Loan Finance LLC and UBS Securities LLC extended the
termination date to April 30, 2008, from the previous expiration date
of Dec. 31, 2007. Finish Line said all other terms in the commitment
letter remain the same.
Finish Line, which in June agreed to buy Genesco, has
previously complained that the company had breached the merger
agreement by not providing financial data or access to executives. The
lenders had expressed concern about Genesco's financial performance
since the buyout agreement in June
Last month Finish Line said it asked a Tennessee court to force Genesco
to provide information related to their proposed merger or else rule
that a materially adverse event has occurred. Genesco in turn filed a
lawsuit to force Finish Line to close the $54.50-per-share deal.
On Oct. 9, the first court hearing in the Genesco-Finish Line lawsuit
was delayed over issues concerning UBS AG and whether or not the bank
will agree to try the case in Nashville. UBS' agreement with Finish
Line limited all legal proceedings to New York.
