Judge denies Amazon's effort to block Saks Global bankruptcy

Core Viewpoint - A U.S. bankruptcy judge has approved a $400 million financing deal for Saks Global Enterprises to support its operations during Chapter 11 bankruptcy, despite opposition from Amazon and other creditors [1][2]. Financing and Bankruptcy Proceedings - Judge Alfredo Perez approved the initial $400 million financing after a lengthy courtroom battle lasting 7.5 hours, with Saks seeking a total of $1.75 billion to remain operational [2]. - Further approvals will be required from the U.S. District & Bankruptcy Court for the Southern District of Texas for the complete financing plan [2]. Opposition from Creditors - Amazon and other creditors have expressed objections to the proposed financing plan, citing concerns over Saks' financial management and the potential impact on their investments [3][6]. - Amazon previously invested $475 million in preferred equity to assist Saks in acquiring Neiman Marcus for $2.65 billion, but now claims that this investment is effectively worthless due to Saks' failure to meet agreed terms [4]. Financial Performance and Obligations - Saks has reportedly failed to meet its financial targets, burning through hundreds of millions of dollars within a year and accumulating significant unpaid invoices to retail partners [5]. - Amazon's legal representatives argue that the new restructuring plan increases Saks' debt burden, further jeopardizing the investments of Amazon and other creditors [6].