Bed Bath & Beyond said on Monday (6) that it will try to raise more than $1 billion by selling shares, on the expectation that market resources can save it from bankruptcy.
The offering of shares and warrants, along with an additional $100 million line of credit from one of its creditors, could help the retailer raise enough cash to avoid having to file Chapter 11 of the US bankruptcy code.
The company said it cannot give guarantees that it will receive part or all of the proceeds from the share offering, which is subject to market conditions.
The company also warned that if it fails to complete the fundraising, it will likely file for bankruptcy and its assets will be liquidated.
The company defaulted on interest payments owed to its bondholders last week after previously saying its credit lines were frozen because it breached its debt agreements.
Bed Bath & Beyond is closing stores and preparing for a possible bankruptcy filing, while looking for buyers for its assets or an infusion of capital.
Source: CNN Brasil
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