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Published on 10/19/2007 in the Prospect News Distressed Debt Daily.

Bombay granted final court approval for $115 million in DIP financing

By Jennifer Lanning Drey

Portland, Ore., Oct. 19 - The Bombay Co., Inc. obtained final court approval of its $100 million debtor-in-possession financing from General Electric Corp., according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The court also granted approval for an additional $15 million in DIP financing for Bombay Canada, which will also be provided by GE.

The DIP will be used for working capital, letters of credit and other general corporate purposes, according to the order.

As previously reported, Bombay's $100 million revolving credit facility will include $30 million available for letters of credit.

The DIP facility will mature on the earliest of 180 days after closing, on the effective date of a plan of reorganization or upon the sale of substantially all company assets.

Interest will be either Base rate plus 50 basis points or Libor plus 175 bps, at Bombay's option, and the letter-of-credit interest margin will be 175 bps.

The company will pay a 25 bps unused facility fee.

Bombay is a Fort Worth, Texas-based designer, importer and marketer of proprietary home furnishings. Its Chapter 11 case number is 07-44084.


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