M. Fabrikant & Sons Announces New Negotiated Financing
January 23, 07
M. Fabrikant & Sons announced that it has negotiated additional financing arrangements with its senior secured lenders. The company, which filed for Chapter 11 last November, said it continues to, “Actively pursue a full range of strategic alternatives, including the sale, refinancing, or reorganization of the firm.”
Details about the financing has not been made available. Five hedge funds that specialize in investing in bankruptcies and distressed companies have bought $161.9 million of Fabrikant’s debt. Court records indicate that the company has $363 million in debts and $225.9 in assets.
According to Fabrikant, its Chapter 11 proceedings “currently provide the best opportunity to maximize the value of its assets and its business for all stakeholders.”
Matthew Fortgang, CEO of Fabrikant said, “We are thrilled to announce that our new lenders are supportive of our reorganization process and willing to provide us with additional liquidity. This makes it possible to get back to levels of service our customers have come to expect and trust from Fabrikant.”
New York-based Fabrikant is a diamond jewelry manufacturer that was founded over a century ago.