| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Global Home Products, LLC > News item |
Global Home Products granted court approval of DIP amendment
By Caroline Salls
Pittsburgh, Oct. 30 - Global Home Products, LLC obtained court approval to amend its debtor-in-possession facility to extend the DIP ratification agreement and reduce the maximum credit limit, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.
A final hearing is scheduled for Nov. 15.
According to the motion, the sale of the company's Burnes and WearEver businesses has resulted in reduced borrowing needs, as well as reduced borrowing availability because of the elimination of the sold assets from the borrowing base.
The amendments include an extension of the ratification agreement date to Feb. 28 from Oct. 31 and a reduction of the maximum credit limit to $70 million from $130 million.
Also, the additional loan limit will be reduced to $8.19 million from Oct. 30 through Dec. 3; to $7 million Dec. 4 through Dec. 31; to $6 million Jan. 1 to Feb. 4; and to $5 million Feb. 5 and after.
The additional loan limit is currently $20 million.
The inventory loan limit will be reduced to $31 million from $53 million, and the letter-of-credit accommodation sublimit will be reduced to $8 million from $25 million.
In addition, starting with the week of Nov. 3, total weekly disbursements in the company's budget cannot exceed projected disbursements by more than 15%.
Global Home Products will pay a $250,000 loan extension and amendment fee.
Global Home Products is a Westerville, Ohio-based designer, marketer and manufacturer of branded consumer and specialty products to retail and hospitality customers and original equipment manufacturers. The company filed for bankruptcy on April 10, 2006. Its Chapter 11 case number is 06-10430.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.