Saks Global Enterprises is in talks to secure a loan of about $1 billion as it prepares for a possible Chapter 11 bankruptcy filing in the coming weeks, Bloomberg News reported on Sunday, citing people familiar with the matter.
The luxury retailer missed a $100 million interest payment due Dec. 30 and is negotiating a forbearance with creditors to buy time for a financing deal or reorganization plan, the report said.
Saks Global did not immediately respond to a request for comment. Reuters could not immediately verify the report.
Bondholders have discussed a debtor-in-possession loan structure that could include at least $750 million in new money and a roll-up of existing debt to allow the New York-based company to continue operating after it files for bankruptcy, the Bloomberg report added.
Marc Metrick last week stepped down as chief executive of the company and Richard Baker was named as his successor.
