Hastings granted interim approval of DIP loan, store-closing sales

By Caroline Salls

Pittsburgh, June 14 – Hastings Entertainment, Inc. received interim access to a $90 million debtor-in-possession facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final DIP loan hearing is scheduled for July 15.

Bank of America, NA is the administrative and collateral agent.

The DIP loan will mature on the earliest of Dec. 12, the closing of a sale of all or substantially all of the company’s assets and the effective date of a Chapter 11 plan.

Interest will be Libor plus 300 basis points or, at the option of the debtors, Base rate plus 200 bps.

In addition, Hastings received interim court approval to continue the store-closing sales being conducted by Gordon Brothers Retail Partners, LLC under an agreement with MovieStop, LLC.

Those sales began on May 14 and are expected to end on July 31.

The final hearing on continuation of the store-closing sales is set for July 6.

Amarillo, Texas-based Hastings Entertainment is a multimedia entertainment retailer. The company filed bankruptcy on June 13 under Chapter 11 case number 16-11452.

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