Pacific Sunwear files for Chapter 11 bankruptcy
Pacific Sunwear of California Inc, a specialty retailer that is backed by Golden Gate Capital, has filed for Chapter 11 bankruptcy protection. Golden Gate is converting more than 65 percent of its term loan debt into the equity of the reorganized company and will provide a minimum $20 million in additional capital once PacSun emerges from Chapter 11. Wells Fargo Bank, National Association are providing a flexible draw $100 million in debtor-in-possession ("DIP") financing to PacSun, which the company can draw on during its reorganization. Wells Fargo has also committed to provide a five-year $100 million revolving line of credit to PacSun once it emerges from Chapter 11. PacSun said all of its stores would remain open as it reorganizes.
7 April 2016•10 mins read
