Kmart reconsiders additional funding

By Staff -- Home Textiles Today, 8/26/2002 2:03:00 PM

Troy, MI — Kmart said that its liquidity is sufficient and that it will not seek authority to increase the size of its current $2 billion debtor-in-possession credit facility.

The retailer, which filed for Ch. 11 in January, said its latest projections show that at the peak of seasonal inventory build it will have $1.1 billion of cash and available credit under the DIP facility, enough to meet its post-petition obligations to vendors.

Earlier this month, Kmart said it would seek authority from lenders to boost the maximum size of the DIP facility by up to $500 million, in order to provide additional comfort to suppliers and the factoring community.