Hartmarx $160 million DIP facility approved

By Caroline Salls

Pittsburgh, Feb. 20 - Hartmarx Corp. obtained court approval of a $160 million debtor-in-possession facility from Wachovia Capital Finance Corp., according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The facility will terminate on the earlier of July 1, 2009, the effective date of a plan of reorganization or liquidation and the closing of a sale of the company's assets.

Interest on all U.S. loans will be the U.S. Prime rate plus 575 basis points, and interest on all Canadian loans will be the Canadian Prime rate plus 575 bps.

The company will pay an $800,000 DIP facility fee and a 5¾% letter-of-credit fee.

Hartmarx, a Chicago-based producer and marketer of business, casual and golf apparel, filed for bankruptcy on Jan. 23. Its Chapter 11 case number is 09-02046.

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