RICHMOND, Va (Reuters) - Electronics retailer Circuit City Stores got final U.S. Bankruptcy Court approval on Monday for a $1.1 billion debtor-in-possession financing to provide liquidity as it reorganizes.
The financing enables the retailer to pay vendors and other business partners for goods and services received. The company filed for Chapter 11 protection last month.
Circuit City is also seeking approval from the U.S. Bankruptcy Court in Richmond, Virginia, where it is based, to void severance contracts for ex-officers including Philip Schoonover, who agreed to step down as chairman and chief executive in September.
The company said last week that it filed court notice seeking to reject store leases for 154 of 155 U.S. stores it is liquidating. The company canceled an auction of those leases last week after it failed to receive enough bids.
(Reporting by Louis Llovio, editing by Leslie Gevirtz)
