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The Rockport Company D.I.P. Interim Financing Approved

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The U.S. Bankruptcy Court issued an order on an interim basis, with revisions (i) authorizing The Rockport Company to (a) obtain postpetition financing on a super-priority, senior secured basis and (b) use cash collateral, (ii) granting (a) liens and super-priority claims and (b) adequate protection to certain postpetition lenders, (iii) modifying the automatic stay, (iv) scheduling a final hearing, and (v) granting related relief. As previously reported, “The Prepetition ABL Credit Agreement provides for, among other things, up to $60,000,000 in aggregate principal amount of revolving loan commitments, including letter of credit and swingline loan commitments, with a sublimit for letters of credit of $10,000,000 (collectively, the ‘Prepetition ABL Facility’)….The New Money DIP Notes facility is New Money DIP Notes of $10,000,000 upon entry of the Interim Order, and availability of up to an additional $10,000,000 in New Money DIP Notes upon entry of the Final Order. Interim Roll-Up Notes, upon entry of the Interim Order and subject to the ‘challenge’ rights of third parties, up to $20,000,000 in outstanding Prepetition Notes under the Prepetition Note Purchase Agreement equal to each DIP Note Purchaser’s initial DIP Commitment will ‘roll up’ into the DIP Note Facility on a dollar-for-dollar basis. Final Roll-Up Notes, upon entry of the Final Order and subject to the ‘challenge’ rights of third parties, up to $20,000,000 in outstanding Prepetition Notes under the Prepetition Note Purchase Agreement equal to each DIP Note Purchaser’s DIP Commitment will ‘roll up’ into the DIP Note Facility on a dollar-for-dollar basis.” The Court scheduled a final hearing on June 13, 2018.

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