Finish Line, which had entered into a merger agreement with Genesco, and then tried to back out of the deal, has been ordered by Davidson County Chancellor Ellen Hobbs Lyle to go ahead and buy Nashville-based Genesco.
Both companies are in the footwear industry, which has taken a toll in the current economy.
Indianapolis-based Finish Line planned to finance the deal by borrowing money from UBS. UBS anticipates that the combined company will not be able to pay its debts and has sued both companies in a New York Court to escape its commitment, according to a Tennessean article.
Lyle acknowledges that if the NY court finds the combined company insolvent, it may be impossible for Finish Line to buy Genesco, the article continued.
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