Cynergy Data approved for final DIP loan access, pending court order

By Alice Popovici

New York, Oct. 2 - Cynergy Data, LLC received authorization for full access to its debtor-in-possession financing from Comerica Bank, Wells Fargo Foothill LLC, Harris, NA and Moneris Solutions Inc., pending entry of a court order, according to Dennis Drebsky, a partner with Nixon Peabody LLP.

"The court continued the interim financing until the submission of the final order," which is expected within a couple of days, Drebsky said.

As previously reported, the DIP loan consists of a working capital facility and a $7.5 million interchange DIP facility.

The working capital facility will be in an amount equal to the lesser of $9 million, less the amount of the company's pre-bankruptcy senior lender forbearance debt, plus the total amount of payments or proceeds of collateral that are applied after the filing date to reduce the amount of pre-bankruptcy senior lender debt and $25 million.

Under the interim approval, the company can access the working capital facility.

The proceeds of both DIP facilities will be used for working capital and general corporate purposes and other budgeted financing needs.

The loans will mature on the earlier of Oct. 16 and upon completion of the sale of substantially all of the company's assets.

Interest will be Libor plus 1,000 basis points.

Cynergy Data, a New York-based credit card processing service, filed for bankruptcy on Sept. 1 in the U.S. Bankruptcy Court for the District of Delware. Its Chapter 11 case number is 09-13038.

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