Saks Gets $600 Million Lifeline as Creditors Face Steep Losses

Saks Global Enterprises has reached a $600 million debt deal with a number of its existing lenders that would force some creditors to accept losses and push them back in the repayment priority line.

As part of the complex arrangement, a group holding a slim majority of the struggling luxury retailer’s $2.2 billion of 11% bonds, which were just issued in December, will provide Saks an immediate $300 million loan, according to deal terms reviewed by Bloomberg. That debt would be among the first repaid if the company goes bust. The retailer operates its flagship Saks Fifth Avenue stores along with Bergdorf Goodman and Neiman Marcus, rival chains it purchased last year.