Barneys wins further interim access to loan; final hearing Sept. 4

By Caroline Salls

Pittsburgh, Aug. 15 – Barneys New York, Inc. obtained a second interim order allowing it to access $75 million in debtor-in-possession financing from affiliates of Hilco Global and the Gordon Brothers Group, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Sept. 4.

The company said the DIP financing, combined with operating cash flow, will help Barneys meet its go-forward financial commitments.

Barneys said $50 million of the DIP financing will be used to pay down the debtors’ pre-bankruptcy secured debt and $25 million will be available as incremental liquidity to fund the Chapter 11 cases and optimize the business.

The DIP facility is scheduled to mature on March 31, 2020 and will accrue interest at Libor plus 1,200 basis points.

Barneys is a New York-based luxury specialty retailer. The company filed bankruptcy on Aug. 6 under Chapter 11 case number 19-36300.

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