July 9, 2009 (FinancialWire) — Eddie Bauer Holdings, Inc. (OTC: EBHIQ) (Current Market Cap: $3.16 Mil.) said it has received final authorization from the U.S. Bankruptcy Court in Delaware to utilize its $100 million debtor-in-possession loan facility from its existing revolving credit lenders.

The company may also use its cash collateral to meet certain ongoing obligations to employees, customers, suppliers and other key constituents.

In a statement, Eddie Bauer said it had also received final court approval to continue to pay its employees “in the usual manner,” including pre-petition wages and salaries, and to pay independent contractor fees and expenses.

The court had previously granted, in a hearing on June 18, 2009, interim approval for the company to access $90 million of the $100 million DIP facility, along with interim or final approval of other relief requested by the company in its first day motions.

In June 17 the company initiated voluntary proceedings under Chapter 11 in the United States and the CCAA in Canada in order to pursue a sale of the business. The court has set July 16, 2009 as the auction date, with a hearing to be held on July 22, to approve a sale.

Seattle-based Eddie Bauer is a specialty retailer that sells outerwear, apparel and accessories for the active outdoor lifestyle. The company operates 371 stores throughout the United States and Canada, and also sells through catalog sales and online. Eddie Bauer participates in a joint venture in Japan and has licensing agreements across a range of product categories.

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