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Metalforming gets interim OK to use $5 million of DIP financing
By Caroline Salls
Pittsburgh, June 20 - Metalforming Technologies Inc. obtained interim approval for up to $5 million of its $12 million debtor-in-possession financing from the Canadian Imperial Bank of Commerce, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.
A hearing for approval of the final DIP financing will be held July 6.
Proceeds from the DIP will be used to pay operating expenses, for limited capital expenditures and for general corporate purposes to allow Metalforming to operate its Chapter 11 cases and sell substantially all its assets.
Interest will be CIBC's alternate base rate plus 250 basis points.
The unused facility fee is 50 bps.
Maturity will be the earliest of consummation of a plan of reorganization or on event of default.
Metalforming, a Chicago-based automobile parts manufacturer, filed for bankruptcy on Thursday. Its Chapter 11 case number is 05-11697.
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