Peekay interim cash collateral use approved; final hearing Sept. 6

By Caroline Salls

Pittsburgh, Aug. 11 – Peekay Acquisition, LLC was granted interim court approval to use the cash collateral of its pre-bankruptcy lenders, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Sept. 6.

The cash collateral will be used to fund the company’s operations while in bankruptcy.

According to the order, Peekay’s cash collateral use will terminate on the earliest of 80 days after the bankruptcy filing date, the effective date of a Chapter 11 plan, the occurrence of an event of default, the acceptance of a purchase offer that is unacceptable to the required term A lenders unless it generates cash proceeds of at least $31 million or the conversion or dismissal of the Chapter 11 case.

Ultimate parent and Chapter 11 debtor Peekay Boutiques, Inc. is a retailer of lingerie, women’s wellness and sexual health products based in Auburn, Wash. The company filed bankruptcy on Aug. 10 under Chapter 11 case number 17-11722.

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