Electronics Distributor Gets $50M To Fund Ch. 11 Sale

Law360, New York (July 13, 2011, 1:47 PM EDT) -- A New York bankruptcy court on Tuesday authorized consumer electronics distributor ArchBrook Laguna Holdings LLC to tap into $50 million in Chapter 11 financing while it focused on finding a buyer.

New Jersey-based ArchBrook and six subsidiaries filed for bankruptcy protection Friday in the midst of a liquidity crisis brought on by excess inventory, leery vendors and a tightened credit facility. The strapped distributor cited $246 million in assets and $176 million in liabilities.

“Given the debtors’ significant liquidity constraints and the difficulty of obtaining long-term...
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