Heritage Home Group DIP loan extended, total obligation amounts set

By Caroline Salls

Pittsburgh, Jan. 8 – Heritage Home Group LLC obtained court approval to amend its debtor-in-possession financing agreement for a third time, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

Under the amendment, the maturity date of the DIP financing will be extended to the earliest of April 30, the effective date of the company’s reorganization plan, the date that all remaining inventory and other collateral of the credit parties is liquidated and the proceeds are received by the DIP loan agent, conversion or dismissal of Heritage Home’s Chapter 11 case, acceleration of the loan and termination of the commitments.

In addition, if the DIP financing obligations exceed $30 million at any time between Jan. 4 through Jan. 20, there will be no advances until the obligations are below $30 million.

The DIP obligations may not exceed $22.5 million during the period of Jan. 21 through Jan. 31; $20 million during the period of Feb. 1 through Feb. 28; and $15 million during the period of March 1 through the maturity date.

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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