Troubled footwear manufacturer Florsheim Group Inc said today it has received interim approval of the debtor-in-possession (DIP) credit facility from the US Bankruptcy Court after it filed for Chapter 11 bankruptcy protection.

The company said the new agreement provides for a $75 million revolving credit facility and was entered into with its existing bank group led by the BT Commercial Corporation.

The DIP credit facility will be used to maintain normal business operations, including payment of employee wages and payments to suppliers, vendors and other business partners for goods and services provided on or after March 4, 2002.

Florsheim also announced that it has received notice from the New York Stock Exchange of the suspension of trading on the exchange of the company's 12.75 per cent Senior Notes due 2000, as a result of the company's filing.