Flooring Firm Empire Today in Talks for New Money, Debt Revamp

Empire Today and some of its lenders are in talks to provide the flooring company with fresh money while it looks to reduce its debt obligations.

An emerging proposal calls for below-par exchanges in which lenders could swap into a mix of senior- and junior-ranking debt, according to people with knowledge of the matter who asked not to be identified discussing a private matter. Empire’s reconfigured debt complex would include first-out, second-out and third-out term loans that set an order of repayment priority and effectively push some lenders down the line.

Those negotiating the transaction would receive better treatment than ...