COURT ALLOWS BRADLEES TO UP DIP AMOUNT
NEW YORK — Bradlees Inc. received bankruptcy court approval Wednesday to increase the available amount under its debtor-in-possession agreement with Chase Manhattan Bank.
The amended agreement allows Bradlees to increase its borrowing to 65 percent of inventory from 60 percent through Jan. 31, 1998.
Bradlees said it needed the liquidity to buy goods for the holidays and allay fears among factors that creditors won’t be paid.
The availability is increased to $52 million from $38 million in November; $55 million from $43 million in December; and $35 million from $23 million in January.
The total Chase facility is $200 million. The bank will be paid a $250,000 fee for the increase in availability.