Overview
- Saks secured court approval after a late-night hearing to begin drawing on a $1.75 billion debtor-in-possession facility, starting with about $400 million.
- US Bankruptcy Judge Alfredo Perez authorized the short-term funding, with a later hearing required for final approval of the full package.
- Amazon told the court its preferred-equity investment is now presumptively worthless and alleged Saks missed budgets, burned cash, and left large vendor invoices unpaid.
- Amazon argues the financing adds new debt that disadvantages unsecured creditors and warned it may seek appointment of an examiner or a trustee.
- The 2024 agreement tied to Amazon’s investment included a Saks storefront on Amazon and a guarantee of at least $900 million in referral payments over eight years.