FAO to Emerge From Chapter 11

Share this content:
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.


close

Next Article in Multichannel Marketing

Sign up to our newsletters



Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above