Value City May Tap $40M DIP Loan

Law360, New York (October 29, 2008, 12:00 AM EDT) -- Just two days after filing for Chapter 11 bankruptcy protection, discount retailer Value City Department Stores has secured $40 million in debtor-in-possession financing from lenders National City Business Credit Inc. and Wells Fargo Retail Finance LLC.

Judge James M. Peck signed off on the loan Tuesday in the U.S. Bankruptcy Court for the Southern District of New York. Value City said the financing would allow it to conduct its liquidation in an orderly manner and maintain the value of the estate.

Ruling that the DIP facility...
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