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:
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Nielsen Allies With Pointlogic on Cross-Channel Planning

Nielsen Allies With Pointlogic on Cross-Channel Planning

Aim is to develop a "next generation" media planning tool.

If Only Engendering Loyalty Was as Easy as Clicking Your Heels

If Only Engendering Loyalty Was as Easy as ...

Rack Room Shoes combines data, research, and mobile email to deliver a high-heeled digital loyalty program.

Zeta Introduces 'Cross-Lifecycle' Platform

Zeta Introduces 'Cross-Lifecycle' Platform

Zeta Hub aims to help CMOs deliver on ROI goals by extending customer lifecycles.