Iron Age obtains second interim DIP approval

By Caroline Salls

Pittsburgh, Feb. 13 - Iron Age Corp. obtained further interim approval of its $23.6 million debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The first interim DIP order came in late January, and another interim hearing is scheduled for Feb. 21. The date of the final DIP hearing will be scheduled at the Feb. 21 hearing.

Proceeds from the DIP facility will be used to fund expenses reflected in a budget through advances of amounts applied to pre-bankruptcy debt and new advances.

Interest will be Prime rate plus 200 basis points.

Originally, the company said the DIP facility would terminate on the earlier of March 15 or upon an event of default.

Iron Age, a Westborough, Mass., retailer and distributor of safety, work and uniform shoes for the industrial, service and government sectors, filed for bankruptcy Jan. 22. Its Chapter 11 case number is 07-40217.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.