Saks Global obtains approval for one billion dollar financing

Saks Global has secured approval from a Texas bankruptcy court for a one billion dollar financing to support its reorganisation plan. The decision was determined by Judge Alfredo Perez during a hearing held in Houston.

The news comes after Saks was able to resolve objections brought forth by luxury brands and business partners that expressed concern over the status of goods delivered to the group’s stores.

Brands like Dolce & Gabbana pushed back against the luxury retailer’s financing proposals, suggesting that lenders could claim collateral rights on products sent to Saks on consignment, Reuters reported.

Saks ultimately confirmed that the stock was not associated with its wider assets. Around 600 million dollars of the new loan will go towards overdue payments to suppliers, with about half to be paid out over the next two weeks.

This forms part of the total financing package linked to Saks’ ongoing bankruptcy proceedings, amounting to around 1.75 million dollars. The funding will be used to refinance prior debt and extend the borrowing limit of the company’s asset-based credit facility.