The U.S. Bankruptcy Court issued an order approving rue21’s expedited consent motion for entry of an order authorizing the Debtors to incur and pay fees, expenses and indemnification obligations in connection with the Company’s proposed exit financing facility. As previously reported, “This new senior secured asset-based revolving credit facility will be a critical component of the reorganized Debtors’ capital structure insofar as it will help fund certain payments and costs incurred in connection with consummation of the Plan and will be a source of liquidity that the reorganized Debtors will need to purchase inventory and fund operations and other working capital expenses. The Debtors have, in consultation with their advisors, reached agreement, pursuant to and in accordance with a certain commitment letter and related documentation (the ‘Exit Commitment Documents’), on a commitment for the revolving exit facility in a principal amount of up to $125,000,000 (the ‘ABL Exit Facility’), in connection with which Bank of America has agreed to act as sole administrative agent, lead arranger and book runner. The Debtors intend to seek approval of the ABL Exit Facility in connection with confirmation of the Plan.”
About Linzee Brown
Linzee Brown is the minority owner and President of New Generation Research, Inc. and has been with the firm since 2002. Linzee is responsible for the overall strategic direction and production of all of New Generation Research’s offerings including Bankruptcy Week, BankruptcyData.com, the Business Bankruptcy Filing Data service, The Bankruptcy Yearbook & Almanac, The Distressed Company Alert and The Turnaround Letter. Prior to joining New Generation Research, Linzee served as Vice President of Direct Marketing for ISM (Boston), a mid-sized strategic marketing company and prior to that he served as a Vice President for Harte Hanks Direct Marketing, one of the country’s largest direct marketing firms.