BP Clothing gets final approval to use $10 million of DIP funding

By Lisa Kerner

Charlotte, N.C., Jan. 5 - BP Clothing, LLC was granted final approval by the U.S. Bankruptcy Court for the Southern District of New York on Thursday to access the $10 million of debtor-in-possession financing from FCC, LLC, according to an attorney familiar with the case. FCC does business as First Capital Western Region, LLC.

As previously reported, in connection with its bankruptcy filing, BP Clothing entered into a post-bankruptcy factoring and security agreement with the lender that provides for the purchase and sale of the company's eligible accounts and the making of post-bankruptcy advances.

The facility will mature on June 8, 2012 or the date that BP Clothing is no longer a debtor in possession, whichever is earlier.

Interest on advances made before the bankruptcy filing date will be Libor plus 475 basis points, and interest on advances made on or after the filing date will be Libor plus 650 bps.

BP Clothing is a New York-based women's apparel company that filed for bankruptcy on Dec. 12. Its Chapter 11 case number is 11-15696.

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