Saks Global wins US approval for $1bn bankruptcy loan – report

Core Viewpoint - Saks Global has received approval for a $1 billion loan from a US bankruptcy court, which is part of a larger $1.75 billion funding package aimed at stabilizing the company during its Chapter 11 proceedings [1][3]. Group 1: Loan Approval and Funding Package - The $1 billion loan was approved after Saks resolved payment disputes with luxury brands and other creditors [1]. - The funding package was authorized by US Bankruptcy Judge Alfredo Perez during a hearing in Houston [1]. - The financing will refinance existing borrowings and expand Saks' asset-based lending facility [4]. Group 2: Settlements and Agreements - Saks reached agreements with key luxury suppliers, including Chanel, Dolce & Gabbana, and LVMH, as well as landlords and Amazon [1]. - Certain landlords settled outstanding rent for January, the month Saks filed for bankruptcy protection [3]. - The company confirmed that products supplied on consignment would remain the property of the brands, addressing vendor objections [2]. Group 3: Financial Obligations and Restructuring Plans - Saks filed for Chapter 11 on January 13, with liabilities totaling $3.4 billion, primarily due to cash-flow pressures from its merger with Neiman Marcus [3]. - The financing arrangement includes commitments from lenders to provide additional support once Saks exits Chapter 11 [5]. - Saks plans to close most of its off-price outlets and focus on luxury and full-price retail during its restructuring [5].