Merit Group granted interim court approval of $55 million DIP loan

By Jennifer Lanning Drey

Savannah, Ga., May 20 - Merit Group, Inc. received interim court approval to obtain $55 million of debtor-in-possession financing from Regions Bank, according to a Friday filing with the U.S. Bankruptcy Court for the District of South Carolina.

The hearing for final approval is scheduled for June 1.

As previously reported, interest will be Libor plus 725 basis points.

The DIP loan will mature on the earliest of three months from closing or the closing of a sale of the company's assets.

Merit is a Spartanburg, S.C., paint sundry distributor. The Chapter 11 case number is 11-03216.

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