Amazon Loses First Attempt to Block Saks Bankruptcy Funding

A judge turned back Amazon.com Inc.’s initial challenge to Saks Global Enterprises’ foray into Chapter 11, approving short-term financing for the bankruptcy.

The online giant claimed the luxury retailer breached a deal to sell Saks products on its website and that its equity investment in the now bankrupt business is “presumptively worthless.” After a late-night, 7.5-hour-long court battle, Saks won access to about $400 million in cash, but must return in the coming weeks to seek final approval of the entire, $1.75 billion financing package.