LL Flooring Holdings Inc. (LL) and several of its subsidiaries have initiated voluntary Chapter 11 reorganization proceedings in the U.S. Bankruptcy Court for the District of Delaware. According to a company statement, these proceedings aim to facilitate a going-concern sale of its business.
The company has secured a commitment for debtor-in-possession (DIP) financing of up to $130 million from its current banking consortium, which is led by Bank of America. Upon receiving Court approval, the additional liquidity from the DIP financing, combined with revenue from ongoing operations, is expected to sustain the business throughout the reorganization process.
