US Dataworks DIP Financing Approved


The U.S. Bankruptcy Court approved US Dataworks’ debtor-in-possession financing motion.

As previously reported, “The Debtor has obtained a commitment for a fully underwritten $150,000 debtor-in-possession financing facility (the ‘DIP Facility’) from TBB, who is to serve as the DIP Lender and which also, intends to purchase the Debtor’s assets….The DIP Facility commitment received by the Debtor constitutes an important endorsement of the Debtor and its plan to implement it chapter 11 plan of liquidation.”

In addition, “The facility provides for a fully underwritten $150,000 new money term loan to be advanced on a secured basis and to be secured by a first priority priming lien against the Debtor’s property and assets. The DIP Facility will allow the Debtor to undertake and complete certain urgent projects that are critical to its efforts in this Case and will provide the Debtor with adequate liquidity through its reorganization process. The Debtor seeks immediate authority to borrow up to $150,000 under the DIP Facility on an interim basis pursuant to the Interim Order.”

The Court scheduled a May 24, 2017 final hearing on the finance motion.

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