Saks lenders and luxury suppliers race to reach deal over bankruptcy loan collateral dispute
Negotiators race to resolve a dispute over collateral for Saks' bankruptcy loan. They hope to reach a deal before a Tuesday deadline to avoid a court battle.
Insights:
Negotiators are currently engaged in a high-stakes race to resolve a dispute over whether concession and consignment inventory, along with its proceeds, can be claimed as collateral for a $1.75 billion debtor-in-possession (DIP) loan for Saks. This ongoing negotiation, as of February 12, 2026, is critical to determining the ownership rights of various Saks suppliers over their goods and will ultimately influence the approval and specific terms of the financing package. Saks has stated that this DIP loan is essential for its continued operations during Chapter 11, providing the necessary liquidity to keep stores open and pay vendors while the company works to restructure billions of dollars in debt.
