True Value reaches agreement with its lenders

True Value Company reached an agreement with its lenders last week that will allow it to avert liquidation and hasten bankruptcy proceedings. In October, True Value announced that it planned a sale to Do it Best Corp. 

On Thursday, True Value’s legal representative told the courts that the company would deliver to the lenders a net pay-down of US$163 million in cash.

“Failure to achieve that net pay-down will give the lenders a right to terminate the DIB sale and commence a liquidation, subject to a liquidation budget that is acceptable to the lenders, the debtors, and the committee,” said attorney Robert D. Drain, of the law firm that represents True Value.

He added that True Value would also pay up to US$45 million in administrative expense liabilities.

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