Heritage Home Group granted interim access to $25 million of DIP loan

By Caroline Salls

Pittsburgh, July 31 – Heritage Home Group LLC obtained court approval to access $25 million of a proposed $98 million in debtor-in-possession financing from PNC Bank, NA on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Aug. 27.

The company said the facility will provide up to $18 million of additional liquidity to support its operations during its restructuring and sales process.

The facility will mature on the earliest of Dec. 31, the effective date of a plan of reorganization, the later of a closing of a sale of the company’s assets or business and the date on which all net proceeds are received, the date of conversion or dismissal of the Chapter 11 case, 30 days following entry of an interim order if a final order has not yet been entered and the date of termination of the revolving loan commitment.

Interest will accrue at the Base rate plus 500 basis points.

High Point, N.C.-based Heritage Home Group is a home furnishings manufacturer and retailer. The company filed bankruptcy on July 29 under Chapter 11 case number 18-11736.

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