Gold Standard Baking gets OK to access $500,000 of DIP financing

By Sarah Lizee

Olympia, Wash., June 24 – Gold Standard Baking, LLC received interim approval to access $500,000 of a $1.5 million in debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company said the financing will allow it to continue to operate in the normal course, pay landlords and vendors, and have enough liquidity to pay the administrative costs required in the Chapter 11 process.

The facility is with prepetition lender 37 Baking Holdings, LLC.

The DIP facility is set to mature on Aug. 15 and bear interest at 12%.

The company also received interim access to the cash collateral of 37 Baking Holdings and prepetition lender Parallel49 Equity (Fund V), LP.

In April, 37 Baking Holdings acquired all the rights of the initial lenders under the company’s first-lien credit facility. The lender has also agreed to serve as stalking horse bidder for the company’s assets.

The stalking horse purchase price includes a credit bid against $20 million of the company’s first-lien debt, assumption of some liabilities, and assumption of contracts.

The Chicago-based industrial baker filed Chapter 11 bankruptcy on June 22 under case number 22-10559.

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