Wickes gets final approval for $115 million debtor-in-possession financing

By Jeff Pines

Washington, March 29 - Wickes Inc. said it received final approval for its contested $115 million debtor-in-possession financing. Merrill Lynch Capital leads the group providing the facility.

Bondholders and the company's unsecured creditors' committee had objected to the facility for the Vernon Hills, Ill.-based buildings materials distributor. Bondholders said they would lose their seniority to a lender and the committee objected because it felt the terms of the agreement gave the debtor-in-possession lenders too much authority.

The facility includes a $77.625 million revolver and $37.375 million in two-year term loans.

Wickes filed for bankruptcy on Jan. 20 with the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division and received interim approval for a $100 million facility the next day.

The company's Chapter 11 case number is 04-02221.

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