Malden Mills $10 million DIP approved

By Caroline Salls

Pittsburgh, Feb. 5 - Malden Mills Industries, Inc. obtained final court approval of its $10 million debtor-in-possession facility from General Electric Capital Corp., according to a Monday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The $10 million DIP financing includes a $1.5 million letter-of-credit subfacility.

Interest will be Prime rate plus 200 basis points.

Malden Mills will pay a $200,000 closing fee.

The DIP commitment will terminate and all amounts owing under the DIP facility will be due and payable on the earliest of 90 days after the bankruptcy filing; the effective date of a plan of reorganization; upon closing of a sale of substantially all company assets; or upon occurrence of an event of default.

Malden Mills, a Lawrence, Mass.-based textile company, filed for bankruptcy on Jan. 10 in the U.S. Bankruptcy Court for the District of Delaware. The case was transferred to the Massachusetts court on Jan. 16. Its Chapter 11 case number is 07-40124.

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