AMERICAS DISTRESS DAILY: Retailer Gabe’s to Give Keys to Lenders

Warburg Pincus-backed Gabe’s is closing in on a debt deal that would hand over control of the discount retailer to some of its lenders, according to people familiar with the situation.

• Lenders would provide as much as $55 million in new money, including $15 million of rescue financing in the coming days and another $25 million injection depending on concessions from landlords and suppliers.
• Gabe’s has also been looking to cut deals with various landlords and vendors to help bring down expenses. A critical element of the company’s plan calls for existing term loan lenders to swap their debt for ...