Dean & DeLuca secures court approval of $2.42 million DIP facility

By Caroline Salls

Pittsburgh, May 14 – Dean & DeLuca New York, Inc. received court approval to obtain $2.42 million in debtor-in-possession financing, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

The Siam Commercial Bank Public Co. Ltd. is the DIP lender.

Absent post-bankruptcy financing, Dean & DeLuca said it would be forced instead into a fire-sale liquidation that would be unlikely to provide significant returns to its creditors.

The facility will mature on the earliest of the effective date of a Chapter 11 plan, a plan confirmation milestone deadline, which is subject to four one-month extensions, acceleration of the facility following an event of default, the closing of a sale of all or substantially all of the company’s assets, conversion of the Chapter 11 case, the filing of a plan that does not provide for payment in full in cash of all DIP loans and the date on which the court approves the extension of any other credit facilities.

Interest will accrue at a rate of 6%.

Dean & DeLuca is a Wilmington, Del.-based specialty retailer. It filed bankruptcy on March 31 under Chapter 11 case number 20-10916.

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