Fingerhut Owner Bluestem Files Bankruptcy With Cerberus Loan

Direct-to-consumer retailer Bluestem Brands Inc., owner of the Fingerhut mail-order service, files for Chapter 11 protection with commitments for as much as $80 million in new liquidity from Cerberus Capital Management LP affiliates and other lenders, and a stalking-horse bid from a lender group, court papers show.

• The bankruptcy loan agreement calls for the repayment of Bluestem’s $45m outstanding asset-backed loan and as much as $80m in new money, for a total of $125m
  • New borrowings bear interest at Libor+6% or an alternate base rate+5%, per court papers
• Cerberus Business Finance LLC is the administrative agent on the financing; ...