Insolvent Praktiker secures financing to pay suppliers
* Reaches agreement with credit insurers, banks, suppliers
* Deal applies to Praktiker store chain
* Financing talks ongoing for Max Bahr stores
* Biggest shareholder Donau Invest halves its stake
* Shares up 3.5 percent
FRANKFURT, Aug 6 (Reuters) - Insolvent home improvement store chain Praktiker has secured financing to pay suppliers and keep shelves stocked as it seeks an investor.
Praktiker filed for insolvency last month after talks with creditors failed, triggering fears of heavy job losses. Administrators have kept the business running while reviewing options for the chain, a household name in Germany.
"We reached an agreement on financing for the supply of goods following intensive negotiations with credit insurers, banks and suppliers," insolvency administrator Christopher Seagon said in a statement on Tuesday.
Praktiker did not disclose details of the agreement, which affects Praktiker-branded stores and some other outlets with a total 11,600 employees.
Talks for a similar deal for Praktiker's Max Bahr chain, which filed for insolvency separately on July 25, are ongoing.
Last week, the administrators of Praktiker stepped up the search for an investor by appointing Macquarie as advisor and asking for bids by September.
Praktiker said on Tuesday that first expressions of interest were being evaluated.
Separately, Praktiker said its biggest investor, Austria-based Donau Invest had cut its stake to 4.7 percent from almost 10 percent.
Shares in Praktiker, which have lost more than 80 percent of their value over the past month, were up 3.5 percent at 0.089 euros by 1438 GMT. (Reporting by Maria Sheahan, Editing by Thomas Atkins)
- Ten countries scour sea for Malaysia jet lost in 'unprecedented mystery' |
- Shots fired in air during raid at Crimea naval base
- Missing Malaysian jet may have disintegrated in mid-air: source |
- Mexico kills drug kingpin reported dead years ago: official
- Pistorius vomits in court at Steenkamp autopsy details