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.
F&M Distributors currently operates 119 F&M deep-discount super drugstores in 11 states, offering a wide selection of branded health and beauty aids, cosmetics, fragrances, and household supplies. In addition, the company operates six PartiGiant party supply superstores in Michigan and Illinois.
