The judge presiding over Nine West Holdings Inc.’s bankruptcy authorized the company to borrow another $22 million after it reached an agreement with junior creditors who are challenging its chapter 11 exit proposal, WSJ Pro Bankruptcy reported. Bankruptcy Judge Shelley Chapman approved the financing during a hearing Thursday in the U.S. Bankruptcy Court in New York after low-ranking creditors who had initially opposed the loan proposal acquiesced. The new loan from Nine West’s term lenders comes on top of a $300 million debtor-in-possession package they have already extended to keep the shoe and accessories retailer operating while it restructures its debts. The additional liquidity is designed to keep Nine West afloat while it battles with junior creditors over the terms under which it can emerge from court protection. A trial on the company’s contested bankruptcy exit plan is scheduled to begin Jan. 28.
