Judge grants Party City early access to $75M bankruptcy loan

Party City Holdco will be available Quick access to $75 million of a $150 million borrower loan The company sought a voluntary Chapter 11 bankruptcy filing, a federal judge ruled Wednesday. A final review to evaluate the loan of Party City’s debtor, at which time the rest of the financing will be available to the store, is scheduled for February 14.

The company file for bankruptcy on Tuesday.

Judge David R. Jones of the US Bankruptcy Court for the Southern District of Texas also approved a handful of other legal orders during the hearing. In summary, the judge’s rulings allow Party City to continue operations, pay some of its pre-bankruptcy expenses, and pay employees and will be available soon.

The company owns more than 800 company-owned Party City stores. The company also operates online Halloween pop-up stores. However, the certified stores, Anagram, is an independent balloon business, with branches outside the US that are not part of the bankruptcy case.

Party City’s main products are based on things that enhance birthday, graduation and holiday parties. But when the disease forced many people to cancel their celebrations, events and gatherings, it affected the company’s bottom line. At the same time, the U.S. economy fell to record highs, which led to less spending on special events like parties and balloons.

In a press release this week, the company assured customers, clients and investors that it hopes to stay in business and emerge from bankruptcy. But about 24 hours after the bankruptcy filing was announced, the company faced another setback.

The New York Stock Exchange announced that late Wednesday Party City stock will be removed as a result of the bankruptcy filing. “In achieving its objective of elimination, the NYSE Regulation noted the uncertainty regarding the final effect of this action on the price of the Company’s common stock,” the exchange said. in an explanation.

“The NYSE Rule also noted that the Company’s agreement to restore support contemplates that the holders of the Company’s common stock will not receive any restoration or dividend.” As a result, “trading in the Company’s common stock will be suspended immediately,” the NYSE said.

The company’s stock closed at 37 cents a share on Tuesday.

The NYSE notified Party City on December 15 that his stock was undergoing liquidation after the company’s share price fell below $1.00 over 30 trading days. Party City, which trades under the brand name PRTY, may request a review of the listing deletion decision.

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