Eddie Bauer receives court approval of DIP financing

Seattle Eddie Bauer Holdings announced Wednesday that it has received final authorization from the U.S. Bankruptcy Court in Delaware to use its $100 million debtor-in-possession loan facility from its existing revolving credit lenders, and to use its cash collateral to meet certain ongoing obligations to employees, customers, suppliers and other key constituents.

The company also received final approval to continue to pay its employees in the usual manner, including prepetition wages and salaries, and to pay independent contractor fees and expenses.

"With the Court's rulings, we continue on track to conduct business as usual as we proceed with our sale process," said Neil Fiske, president and CEO, Eddie Bauer Holdings. "The new DIP financing provides liquidity to meet our ongoing obligations, and we appreciate the strong support we have seen from our employees, customers and suppliers.”