Finish Line bankers extend time to buy Genesco

October 11, 2007
The Finish Line Inc. said today that its lenders have extended by four months their deadline for the Indianapolis athletic shoe and clothing retailer to buy Genesco Inc.

The deadline was Dec. 31; it is now April 30.

Other terms of the commitment letter by UBS Loan Finance LLC and UBS Securities LLC are the same, Finish Line said.

Finish Line and Nashville, Tenn.-based Genesco are locked in a court battle over whether Finish Line is obligated to consummate the $1.5 billion acquisition it agreed to in June. Genesco sued Finish Line on Sept. 21 to force it to complete the deal, but Finish Line countered with charges that Genesco withheld financial information.

The squabble arose after Genesco suffered a $4.2-million loss in its second quarter-a material adverse affect, the lenders asserted. Credit markets tightened this summer as the housing downturn cast a pall over the financial industry.

Genesco would bring such mall retailers as Journeys, Underground Station, Jarman, Hat World and Lids into the Finish Line fold.

Source: XMLFULL/XMLFull5756.xml

Recent Articles by IBJ Staff

Comments powered by Disqus