US-based department store chain Sears Holdings has reportedly received approval from the US Bankruptcy Court for the Southern District of New York to raise $350m bankruptcy financing.
The retailer secured the financing from investment adviser firm Cyrus Capital Partners, reported Reuters.
The loan, which was approved by US Bankruptcy Judge Robert Drain at the court hearing, now replaces a similar financing deal signed with Great American Capital Partners.
Great American Capital Partners president John Ahn was quoted by the news agency as saying: “The terms of the transaction were much less favourable than what we had agreed to.”
This loan together with $300m provided by banks will provide Sears with a total of $650m in financing, according to Reuters.
Earlier this month, the department store chain has also received court approval to sell its Sears Home Improvement business (SHIP) through a ‘stalking horse’ asset purchase agreement with Service.com for approximately $60m in cash.
The sale process will be conducted under Section 363 of the US Bankruptcy Code and has received approval from the company’s restructuring committee featuring its independent directors.
In October this year, Sears, along with its subsidiaries, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York.