Garden Fresh granted court approval of $1 million interim DIP loan

By Caroline Salls

Pittsburgh, Oct. 4 – Garden Fresh Restaurant Corp. obtained court approval to use $1 million of a proposed $4.5 million in debtor-in-possession financing from second-lien lenders, according to an interim order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Oct. 28.

The company said the financing will be used to fund post-bankruptcy operating expenses, including its obligations to employees and suppliers.

Cortland Capital Market Services LLC is the administrative and collateral agent.

Interest on the one-year DIP facility will accrue at a rate of 15½%.

Based in San Diego, Calif., Garden Fresh operates 128 restaurants in 15 states under two brand names: Souplantation and Sweet Tomatoes. The company filed bankruptcy on Oct. 3 under Chapter 11 case number 16-12174.

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