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Modern Continental secures commitment for $5 million DIP facility
By Caroline Salls
Pittsburgh, July 24 - Modern Continental Construction Co., Inc. requested court approval of an up to $5 million debtor-in-possession financing commitment, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.
St. Paul Fire and Marine Insurance Co. is the lender agent.
The proceeds of the DIP facility will be used for working capital and general corporate purposes, to pay the costs and expenses of the administration of Modern Continental's Chapter 11 bankruptcy case and to fund its business operations through Oct. 3.
Without the financing, the company said it would not have enough liquidity to meet its daily cash needs, including payroll, rent and insurance.
Interest will be Prime rate plus 200 bps.
The DIP facility will mature on the earliest of Oct. 10, on the effective date of a plan of reorganization and upon dismissal or conversion of the company's Chapter 11 case or appointment of a trustee or examiner.
A hearing is scheduled for July 28.
Modern Continental, a Dedham, Mass., contractor, filed for bankruptcy on June 23. Its Chapter 11 case number is 08-14558.
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