Garden Fresh secures approval of DIP loan and asset sale procedures

By Caroline Salls

Pittsburgh, Nov. 15 – Garden Fresh Restaurant Corp. obtained final court approval to access $4.5 million in debtor-in-possession financing from second-lien lenders and received approval of the bid procedures for the proposed sale of its assets, according to orders filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

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%.

As previously reported, Garden Fresh plans to sell its business to second-lien lenders, subject to higher and better bids. The stalking horse bidder is entitled to credit bid the amount of all outstanding loan obligations.

No bid protections were requested.

Preliminary bid documents are due by 5 p.m. ET on Dec. 2, and the bid deadline is 5 p.m. ET on Dec. 6.

An auction will be held on Dec. 8, if necessary, and the sale hearing is scheduled for Dec. 15.

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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