FAO to Emerge From Chapter 11

Share this article:
The U.S. Bankruptcy Court for the District of Delaware approved FAO Inc.'s reorganization plan yesterday, letting the company emerge from Chapter 11 and begin making distributions to creditors pursuant to the terms of the plan.


The plan becomes effective this month.


FAO, King of Prussia, PA, got a commitment for up to $77 million in financing to fund operations once the plan takes effect. The financing includes a $67 million revolving credit facility provided by a group of banks led by Fleet Retail Finance Inc., and a $10 million term loan by Back Bay Capital Funding LLC.


The company also received agreements for the purchase of $30 million in convertible preferred stock from a group of investors led by Kayne Anderson Capital Advisors L.P.


The company completed its Chapter 11 reorganization in 83 days.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.

Metal Mulisha Races Towards Customization

Metal Mulisha Races Towards Customization

The motocross apparel company boosts mobile and Web conversions through product recommendations and personalized search.