Lionel Gets One-Month Extension on Loans
From Bloomberg News
Lionel, maker of model trains since 1900, can continue to use loans from PNC Financial Services Group and General Electric Co. through Jan. 31 while it seeks new financing, a U.S. judge ruled.
The $36 million in loans from PNC Bank and GE’s Business Capital unit were set to expire Friday.
U.S. Bankruptcy Court Judge Burton Lifland in New York extended Lionel’s access to the loans by one month. The lenders agreed to the extension.
Lionel, which filed for bankruptcy protection in November, has commitments from Guggenheim Corporate Funding and Wachovia Corp.’s Congress Financial Corp. for an additional $60 million in loans. The train maker is seeking approval of the financing from its largest creditor, M.T.H. Electric Trains.
