Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for South Franklin Circle Project > News item |
South Franklin Circle wins interim access to $1 million DIP facility
By Jim Witters
Wilmington, Del., Oct. 26 - South Franklin Circle won interim access to its $1 million debtor-in-possession financing facility during an Oct. 26 hearing in the U.S. Bankruptcy Court for the Northern District of Ohio, according to debtors attorney Sean D. Malloy.
The DIP facility through Judson Services, Inc. will mature on March 31, 2013 and will not accrue interest.
According to the financing motion, the pre-bankruptcy secured lenders are required to commit that any funding of DIP loans not repaid to Judson will be a credit against any 2013 obligations of Judson under an old credit support agreement.
The court scheduled a final DIP hearing for 2:30 p.m. ET on Nov. 13.
Plan confirmation
Also during the hearing, the company's pre-packaged plan of reorganization was scheduled for a confirmation hearing at 8:30 a.m. ET on Dec. 3.
As previously reported, the plan is based on a restructuring agreement with Hamlin Capital Management, LLC.
The company filed for bankruptcy to implement the restructuring agreement, because its pre-bankruptcy secured lenders did not unanimously support the terms of the deal.
The company said the plan is supported by the requisite majority of pre-bankruptcy secured lenders.
Restructuring plan
To implement the balance sheet restructuring, the company will replace its current $100.6 million of secured debt with $66.75 million in new bond- and term note-secured debt. Of that amount, $17.75 million will be subordinated long-term debt.
The company said it may also borrow up to $550,000 for working capital under the agreement with Hamlin, if necessary.
South Franklin said its senior secured debt will be reduced by more than 50% and its total secured debt by about 40% under the proposed restructuring.
South Franklin Circle, a Chagrin Falls, Ohio-based nonprofit continuing care retirement community, filed for bankruptcy on Oct. 24. The Chapter 11 case number is 12-17804.
© 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.