DecisionOne receives final approval of DIP

By Caroline Salls

Pittsburgh, April 14 - DecisionOne Corp. received final approval for access to its debtor-in-possession financing and to use cash collateral, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

DecisionOne has a commitment for a $25 million debtor-in-possession facility. The court authorized the use of the loan plus the use of cash collateral. Availability will be subject to a borrowing base.

Wells Fargo Foothill, Inc. is administrative agent and collateral agent for the DIP facility.

Interest will be at Libor plus 350 basis points and there is a 50 basis points unused line fee.

The loan will run for nine months unless DecisionOne exits Chapter 11 earlier.

Proceeds will be used to repay the pre-bankruptcy revolver, for general corporate purposes and for fees and expenses.

The filing said DecisionOne needs to use cash collateral in order to minimize disruption and avoid the termination of business operations and to enhance the possibility of successful reorganization.

DecisionOne made a prepackaged Chapter 11 filing March 15 after failing to achieve an out-of-court debt restructuring.

The Frazer, Pa., provider of information technology support services filed for Chapter 11 on March 15. Its case number is 05-10723.

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