EZ Lube DIP loan hearing to continue Tuesday

By Jennifer Lanning Drey

Portland, Ore., Jan. 12 - EZ Lube, LLC's hearing for final approval of its proposed $62.48 million debtor-in-possession financing agreement will continue Tuesday, according to a source familiar with the case.

The contested hearing began Monday in the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, EZ Lube's official committee of unsecured creditors objected to the DIP loan, claiming it is too costly and that the terms aim to mandate a sale of substantially all of EZ Lube's assets and pronounce the company in default of the loan.

EZ Lube, a Santa Ana, Calif.-based quick lube operator, filed for bankruptcy on Dec. 9. Its Chapter 11 case number is 08-13256.

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