W&L gets OK on $300M DIP plan. (Woodward & Lothrop, debtor-in-possession) (Brief Article)

Daily News Record, February, 1994

NEW YORK (FNS)--Woodward & Lothrop, Inc., has received bankruptcy court approval of a $300 debtor-in-possession financing package from CIT Group Business Credit.

Myron Trepper, counsel to W&L, said the retailer plans to slash the total borrowings under the package to $250 million within the next 60 days due to "enthusiastic trade support."

Marc Kirschner, attorney for the unsecured creditors committee, noted the reduced borrowings will save the complany about $250,000 a year in interest.

The CIT line carries a 0.5 percent interest rate for unused portions of the total package. CIT has agreed to give W&L a $500,000 rebate when the retailer formally lowers the borrowings.

W&L paid CIT a $1 million commitment fee when it arranged...

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