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Event Rentals further interim DIP financing, bid procedures approved
By Kali Hays
New York, March 14 - Event Rentals, Inc. received further interim approval for access to its debtor-in-possession financing and approval of its proposed bid procedures during a Friday hearing, according to an attorney familiar with the case.
The interim DIP order allows the company continued access to $17 million of a proposed $20 million of DIP financing. Ableco Finance LLC is the administrative agent.
As previously reported, the DIP facility will mature on the earliest of the date that is six months after the bankruptcy filing date, the effective date of a Chapter 11 plan, the completion of a sale of all or substantially all of the company's assets and/or stock and the date of termination of the commitments and/or acceleration of the DIP loans on or after a carve-out trigger date.
Interest will be either Base rate plus 650 basis points with a 3.5% floor or Libor plus 850 bps with a 1.5% floor.
Substantially all of the company's assets and its subsidiaries will be acquired by a newly formed entity owned by the company's lenders.
The auction is set to take place on April 21.
All competing bidders must place a cash deposit of 5% of the purchase price and any initial overbid must be at least $124.25 million with incremental increases of $250,000.
Qualified bidders must also agree to a closing date that is no later than May 29.
The final DIP loan hearing is scheduled for April 1 and the sale hearing is scheduled for April 29.
Event Rentals, an Inglewood, Calif.-based provider of event rental products and related services, filed bankruptcy on Feb. 13. The Chapter 11 case number is 14-10282.
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