FTD has received approvals from the U.S. Bankruptcy Court for the District of Delaware for "First Day" motions related to the voluntary Chapter 11 petitions filed on June 3, 2019.
The Bankruptcy Court granted the company interim approval to access up to $47 million of up to $94.5 million in debtor-in-possession (DIP) financing. The DIP financing, combined with cash generated from the company's ongoing operations, will be used to, among other things, support the business during the court-supervised restructuring process.
In addition, the company received Bankruptcy Court approval to, among other things, continue ongoing payments and services without interruption to member florists and business partners supporting the company's operations, manage its continuing relationships with vendors and customers, and pay wages and benefits for continuing employees.
Scott Levin, FTD's President and Chief Executive Officer, said, "The court's approvals of our First Day motions will enable us to continue supporting our member florists and business partners and providing customers the outstanding service they expect from us as we work to complete the initiatives coming out of our strategic review. Looking ahead, we will continue to build on our important relationships with our member florists and business partners. I would like to thank our employees for their continued hard work and commitment."
For more information:
ftdrestructuring.com