Handy Hardware wins approval for $22 million in interim DIP financing

By Jim Witters

Wilmington, Del., Jan. 14 - Handy Hardware Wholesale, Inc. won approval for interim access to $22 million in debtor-in-possession financing from Wells Fargo Bank, NA, during a Jan. 14 hearing in the U.S. Bankruptcy Court for the District of Delaware.

The amount was reduced from $25.1 million in keeping with the company's interim budget, said debtors attorney Gregory A. Taylor.

The DIP agreement and inter-creditor agreements maintain Capital One's first-priority liens on Handy's property, plant and inventory, Taylor said. Wells Fargo holds first liens on all operating cash of the company.

DIP terms

Handy Hardware has obtained a commitment for $30 million in debtor-in-possession financing from its pre-petition operating capital lender Wells Fargo Bank, NA.

Interest will be Libor plus 700 basis points.

The loan will mature on the earliest of 180 days from the bankruptcy filing date, the effective date of a plan of reorganization, 35 days after entry of an interim order if a final hearing has not been held, 24 hours after the final hearing if a final order has not been entered and occurrence of an event of default.

The financing agreement requires the company to file its plan and related disclosure statement within 60 days of the bankruptcy filing, to obtain confirmation within 175 days and to have the plan take effect within 180 days.

A hearing for final DIP approval is scheduled for 2 p.m. ET on Feb. 5.

Handy Hardware is a hardware retailer co-operative based in Houston. Its Chapter 11 case number is 13-10060.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.