In-Shape gets court approval to access $30.3 million DIP financing

By Sarah Lizee

Olympia, Wash., Jan. 21 – In-Shape Holdings, LLC received court approval to access a $30.3 million debtor-in-possession term loan facility, according to a final order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the facility consists of a $15.3 million new money multi-draw term loan to be funded by the pre-petition first-lien lenders and a roll-up of $15 million of pre-petition first-lien obligations.

Interest will be 9% for senior loans, 10% paid in kind for junior loans and 6.5% paid in kind for roll-up loans. The debtors will pay an upfront fee of 2% of the new money commitments.

The facility will mature on the earliest of April 16, the consummation of a sale of substantially all of the debtors’ assets and the date that the obligations under the facility are accelerated.

Proceeds will be used to pay for the fees, costs and expenses incurred in connection with the debtors’ Chapter 11 cases and for working capital.

In-Shape also received final court approval to access the cash collateral of its pre-petition secured lenders.

In-Shape is a Stockton, Calif.-based health club operator. The company filed bankruptcy on Dec. 16 under Chapter 11 case number 20-13130.

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