Bed Bath & Beyond Inc. missed interest payments on its bonds, a week after its bank lenders sent the company a default notice because it was overdrawn on its credit lines, WSJ Pro Bankruptcy reported. The home-goods retailer failed to pay more than $28 million on three tranches of notes totaling roughly $1.2 billion due on Feb. 1, a spokeswoman for the company confirmed Wednesday. Last week Bed Bath reported that JPMorgan Chase & Co. determined the company defaulted after it failed to repay amounts it borrowed on its revolving credit lines. The company has $550 million in loans outstanding from banks led by JPMorgan Chase & Co. and an additional $375 million from a facility provided by Sixth Street Partners, according to a recent securities filing. The coupon miss comes nearly a month after the company raised the possibility of filing for bankruptcy and said it was running low on funds. The company has been making preparations for a chapter 11 process for weeks, including trying to raise a loan to fund its bankruptcy and lining up a buyer for its stronger business, the Buybuy Baby chain, the Journal has reported.
