Portrait Corp. of America amends DIP facility to limit advances and LoC issuance, waive default

By Caroline Salls

Pittsburgh, Dec. 29 - Portrait Corp. of America requested court approval to amend its debtor-in-possession financing agreement that prohibits advances and issuance of letters of credit not accounted for in an updated budget, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the DIP lender is not required to make any advances or issue any letters of credit under the DIP facility for the period of Dec. 22 to Feb. 2 that are not accounted for in the updated budget.

In addition, the lender agreed to waive a known event of default that arose from Portrait Corp. of America's failure to execute a term sheet with Wal-Mart and deliver it to the DIP agent by Dec. 1.

Portrait Corp. of America, a Matthews, N.C.-based portrait studio operator, filed for bankruptcy on Aug. 31. Its Chapter 11 case number is 06-22541.

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