The U.S. Bankruptcy Court issued an interim order approving Perfumania Holdings’ post-petition financing motion.
As previously reported, “The agent and D.I.P. lender is Wells Fargo. The Ratification Agreement provides for (i) a senior secured debtor-in-possession asset based revolving facility in an aggregate principal amount of $83,750,000 (the ‘DIP Facility’) to refinance the Debtors’ prepetition revolving asset-based secured credit facility (the ‘Senior Credit Facility’), (ii) the consensual use of Cash Collateral, (iii) the ability to draw upon letters of credit up to $10 million from the DIP Agent; and (iv) certain other amendments to the Credit Agreement.”
In addition, “The proposed DIP Facility not only satisfies the Debtors’ postpetition financing needs, but also ensures financing for the Debtors’ businesses upon emergence from chapter 11 as the DIP Lenders have made a fully underwritten commitment to provide financing at exit pursuant to the terms of the $100,000,000 Senior Secured Exit Revolving Loan Facility Commitment Letter, dated August 26, 2017, executed by Wells Fargo and Perfumania Holdings (the ‘Exit Facility Commitment Letter’).” The Court scheduled a final hearing for October 6, 2017, with objections due by September 28, 2017.
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