Bakers Footwear Group Inc. is asking a bankruptcy court to allow the company, on an emergency basis, to replace its bankruptcy financing with a new $9.5 million loan that has a later maturity date as the repayment deadline on its original financing draws near, Dow Jones DBR Small Cap reported today. The bankruptcy court approved access to $22 million in bankruptcy financing from Crystal Financial LLC on Nov. 5. That financing, which included a $17.8 million rollup of pre-petition debt, was to be paid back on Nov. 16, or Bakers would have to begin liquidating the entire chain, it said, per the financing agreement.
