American Community Newspapers gets interim OK of $5 million DIP loan

By Caroline Salls

Pittsburgh, April 30 - American Community Newspapers LLC received interim access to its $5 million debtor-in-possession facility, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing will be held on May 14.

The lenders are Bank of Montreal, Chicago Branch and General Electric Capital Corp.

The facility will mature on the earliest of the closing of the sale of substantially all of the company's assets, 21 days after entry of an interim order if the final order has not been entered, the date of a final hearing if the interim order is unacceptable to the lender, upon occurrence of an event of default and July 31.

Interest will be the greater of the Base rate and 5%, plus 500 basis points.

The company will pay a 4% closing fee.

American Community Newspapers, a Dallas newspaper publishing company, filed for bankruptcy on April 28. The Chapter 11 case number is 09-11446.

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