Norpac Foods interim financing OK’d; final hearing set for Sept. 10

By Caroline Salls

Pittsburgh, Aug. 27 – Norpac Foods, Inc. obtained court approval to obtain debtor-in-possession financing from CoBank on an interim basis, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Oregon.

The final hearing is scheduled for Sept. 10.

The DIP facility will comprise a committed, secured revolving line of credit in a total principal amount not to exceed $102.5 million, which Norpac said in the motion is $15 more than the total revolving credit commitment amount in effect immediately before the bankruptcy filing date.

The facility will mature on the earlier of Oct. 31 or the closing of the sale.

The excess financing will accrue interest at the Base rate plus 975 basis points. All other debt will accrue interest at the same rate payable before the bankruptcy filing.

Salem, Ore.-based Norpac Foods is a grower-owned cooperative focused on processing frozen vegetables and fruit. The company filed bankruptcy on Aug. 22 under Chapter 11 case number 19-62584.

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