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Quiznos interim DIP financing approved, plan hearing set for April 25
By Kali Hays
New York, March 17 - Quiznos obtained interim approval to use $10 million of a proposed $15 million in debtor-in-possession financing, and a combined hearing on confirmation of its plan of reorganization and approval of the related disclosure statement was set for April 25, according to two March 17 filings with the U.S. Bankruptcy Court for the District Of Delaware.
The court found that interim approval of the DIP financing was "essential for the continued operation of business," as it appeared the company was "unable to obtain either unsecured credit for money borrowed allowable as an administrative expense or secured credit by a lien on property of the estate," the filing stated.
As previously reported, Quiznos received a commitment for $15 million in debtor-in-possession financing from its senior lenders to support its ongoing operations during the Chapter 11 proceedings.
Wilmington Trust, NA is the administrative agent.
Interest on the DIP loan will be 15%.
The facility will mature 120 days from the date on which the funds are first available for borrowing.
Because it has already received the requisite approvals for its prepackaged restructuring plan from the necessary creditor groups, the company said it expects to execute the plan and emerge from the court-supervised process on an accelerated basis.
The final hearing on DIP financing is scheduled for April 9, and the deadline for any objections to the proposed reorganization plan is set for April 16.
Quiznos, a Denver-based quick-service restaurant chain filed for bankruptcy March 14.The Chapter 11 case number is 14-10543.
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