Huffy gets final approval for $50 million DIP financing

By Jeff Pines

Washington, Nov. 30 - Huffy Corp. obtained final approval for its $50 million debtor-in-possession financing with Congress Financial Corp., according to a court order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Ohio.

The interest rate is Libor plus an applicable margin, which can be as much as 275 basis points. There also is a $125,000 facility fee. The facility matures on the earlier of Sept. 30, 2005 or termination under a default.

In a Monday filing with the court, Huffy asked the court for permission to sell its snowboard business for $2.5 million to Collective Brands Inc. Huffy wants competing bids to start at $50,000 over Collective's $2.5 million with subsequent bids in $50,000 increments.

Miamisburg, Ohio-based Huffy asked the court for a $75,000 break-up fee should another bidder win the court-approved auction.

The company wants the final bid date to be Dec. 8 with a proposed auction date of Dec. 10 and an auction hearing to confirm the results on Dec. 14.

Huffy filed for bankruptcy on Oct. 20. Its Chapter 11 case number is 04-39148.

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