Krispy Kreme Doughnuts (NYSE:KKD) proved last week's news reports correct, as word hit today that it has indeed received the $225 million in financing it so desperately needed.

Many investors likely were concerned about the bogeyman of Chapter 11 that has hovered over this stock, which last year proved that things were not quite as they seemed. For some time, there's been talk that Krispy Kreme could default on its debt repayments, although it managed to get extensions.

Today's financing, provided by Credit Suisse First Boston and Silver Point Finance, gets Krispy Kreme out of hot water -- or hot oil, as the case may be -- for the time being, at least in terms of having some breathing room in paying its obligations and keeping its business running. The company's new CEO, turnaround specialist Steve Panagos, said in a statement, "With more liquidity and no near-term repayment deadlines, we look forward to getting back in the business of selling doughnuts."

As much as investors might rejoice in some of the actions made possible by the financing -- repayment of Krispy Kreme's $90 million credit facility, paying the fees associated with the new financing, and ushering a little cash onto the balance sheet -- it's not too surprising to see that the company's shares didn't move too much today.

First of all, this news doesn't exactly bear the "hot light." Rather, it's a tad bit stale -- it was widely circulated over the newswires last week that the company was seeking this solution to its cash crunch. (Of course, had this arrangement fallen through, investors would have had good reason for anxiety.)

While the addition of turnaround specialists and the subtraction of low-carb mania bode well for the company, there are still a lot of reasons why existing investors might do well to just wait and see, as opposed to selling or buying more. Right here at the Fool last week, we had two very distinct opinions as to whether Krispy Kreme is a turnaround or a terrible idea at the moment.

At any rate, Krispy Kreme continues to be quite a story. Whether it will have a happy ending for investors makes it a real page-turner, too. The temptation to sink money into Krispy Kreme now may be a little sweeter than it was a few months ago, but it's clear that investing in this company still requires quite a strong stomach.

Be sure to read the following Foolish content for the two arguments regarding Krispy Kreme:

Krispy Kreme is one of the few Motley Fool Stock Advisor picks that are underwater. To find out some of the other stocks that David and Tom Gardner have picked for the long term, click here. Or talk to Fools about the pros and cons of Krispy Kreme on our Krispy Kreme discussion board.

Alyce Lomax does not own shares of any of the companies mentioned.