Kimball Hill $51.85 million DIP facility approved

By Caroline Salls

Pittsburgh, May 13 - Kimball Hill Homes, Inc. received court approval of its $51.85 million debtor-in-possession facility from parent Kimball Hill, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

Interest will be 9.5%, and the revolving credit facility will mature on the earlier of the effective date of a plan of reorganization and upon termination of the company's cash collateral.

According to the motion, the cash collateral will terminate on the earliest of the company's failure to comply with the budget; a cross-default to the DIP facility; upon dismissal or conversion of the company's Chapter 11 case or appointment of a Chapter 11 trustee or examiner; upon any material adverse change in the company's financial condition; upon payment of pre-bankruptcy claims without the lender agent's consent; and upon Kimball Hill's failure to file a plan of reorganization within its exclusive filing period.

Proceeds will be used for working capital and other general corporate purposes.

Kimball Hill, a Rolling Meadows, Ill.-based homebuilder, filed for bankruptcy on April 23. Its Chapter 11 case number is 08-10095.

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