Rhodes DIP amendment approved, allows continued use of $6 million in term B financing

By Caroline Salls

Pittsburgh, Aug. 30 - Rhodes, Inc. obtained approval of an amendment to its debtor-in-possession facility that allows the company continued availability of up to $6 million in tranche B term loan financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

Following approval of the sale of Rhodes' furniture retailers and store closing sales, the revolving loan and tranche A term loan portions of the DIP were paid off and terminated.

The tranche B loan was reduced to $6 million from $13 million.

According to its motion, in order to maintain sufficient liquidity to meet its obligations under the sale orders and to pay expenses related to the wind-down of the company's estate, Rhodes requested that the tranche B lenders continue to extend up to $6 million in available financing.

Under the amendment, Rhodes must pay a $100,000 arrangement fee to the tranche B lenders.

Maturity of the new tranche B loan will be the earlier of March 30, 2006 or upon an event of default.

Interest will be Prime rate plus 625 basis points.

Back Bay Capital Funding LLC is the agent for the lenders.

Rhodes, an Atlanta-based furniture retailer, filed for bankruptcy on Nov. 4, 2004. Its Chapter 11 case number is 04-78434.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.