WARREN, Mich. -- F&M Distributors' said its bank group, led by the National Bank of Detroit, agreed to provide $50 million in debtor-in-possession financing.

The $50 million facility is secured by a first priority lien on, among other things, the inventory, receivables, intangibles, and all other assets of the company. The bankruptcy court approved the use of up to $20 million of the new facility immediately, and scheduled a final hearing Jan. 5 to approve the company's ability to borrow the full $50 million.

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