Bankruptcy court grants Cache lifeline at the 11th hour

Cache Inc finally saw some light at the end of the tunnel when it was granted court approval for postposition financing from Salus Capital Partners, which last year set up a credit facility for the women's apparel retailer, to help cover costs accrued from its February Chapter 11 filing.

US Bankruptcy Judge Mary Walrath authorised earlier this week Cache to borrow up to 22 million dollars after the company and its committee of unsecured creditors made peace.

Earlier in May, Cache Inc.'s unsecured creditors played their last card to force the liquidating women's retailer into a chapter 7 bankruptcy after reaching concessions with the company and its secured lender, Salus Capital Partners .

Back then, and at the very last minute, Salus agreed to set aside 800,000 dollars from the cash collateral pile dedicated to pay creditors. In virtue of the deal, these funds will instead pay the rent claims owed to Cache's now-former landlords as well as suppliers for goods delivered in the 20 days prior to Cache's bankruptcy filing.