LESLIE FAY GETS COURT APPROVAL TO SHRINK DIP FINANCING 25%
NEW YORK — The Leslie Fay Cos. received bankruptcy court approval Monday to reduce its debtor-in-possession financing facility by 25 percent, to $60 million.
The new facility, with The First National Bank of Boston and BankAmerica Business Credit Inc., is expected to carry the women’s apparel maker through the consummation of a plan of reorganization.
Leslie Fay anticipates having its reorganization plan confirmed in late January.
The company said the reduced facility reflects its smaller capital requirements during the period. Leslie Fay’s previous $80 million line was scheduled to expire Dec. 31.
As reported, the new financing deal contains various earnings covenants for Leslie Fay and its Sassco Fashions division. Sassco will be either sold or spun off to creditors as part of Leslie Fay’s reorganization. — Fairchild News Service