Tweeter Home Entertainment Group, Inc., disclosed that to address its financial challenges and support its ongoing efforts to evolve its home installation and services business model, the company and seven of its affiliates, on June 11, 2007, filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware.
Tweeter has taken this action after determining that a Chapter 11 reorganization is in the best long-term interest of the Company, its employees, customers, creditors, business partners and other stakeholders.
Tweeter also announced that it has secured a $60 million secured debtor-in-possession credit facility provided by General Electric Capital Corporation.
Tweeter, through a first day motion, will seek immediate authority to access that post-petition credit facility. Tweeter intends to use the post-petition liquidity to purchase merchandise, pay employee salaries and benefits and for other general corporate purposes.
In conjunction with the filing of its
bankruptcy petition, the company filed a variety of "first day
About Tweeter Home
Based in Canton, Massachusetts, Tweeter
Home Entertainment Group, Inc. (NASDAQ: TWTR) -- http://www.tweeter.com/ --
is a specialty consumer electronics retailer providing home and mobile
entertainment solutions. The company operates 130 stores
under the Tweeter, hifi buys, Sound Advice and Showcase Home
Entertainment names. The company's stores are located in the
following markets: New England, the Mid-Atlantic, Chicago, the Southeast
(including Florida), Texas, Phoenix and Las Vegas.
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