Bombay granted interim approval for $115 million DIP financing

By Jennifer Lanning Drey

Portland, Ore., Sept. 27 - The Bombay Co., Inc. was granted interim court approval of its $100 million debtor-in-possession financing from General Electric Corp., according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

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

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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