GNC Discusses Bankruptcy Loan Before June 15 Debt Trigger
- Company faces early repayments if it misses liquidity target
- Covid-19 crisis complicates salvage of long-struggling chain
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GNC Holdings Inc. and its senior lenders are negotiating a bankruptcy loan just days before a crucial debt deadline for the vitamin retailer, according to people with knowledge of the matter.
The debtor-in-possession loan is being discussed as GNC approaches a potential early repayment of about $60 million to its asset-based lending facility on June 15, said the people, who asked not to be identified discussing a private matter. Lenders can force the payment if liquidity falls below a set level on that date, company filings show.