Summit Global Logistics granted interim DIP approval

By Caroline Salls

Pittsburgh, Feb. 5 - Summit Global Logistics, Inc. was granted interim access to $2 million of its $5 million in debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The final hearing is scheduled for Feb. 20.

Fortress Credit Corp. is the DIP agent.

As previously reported, DIP proceeds will be used to pay payroll, taxes, inventory suppliers, overhead, rent, utilities and other expenses necessary for the continued operations of the company's businesses and the management and preservation of its assets.

Interest will be Libor plus 675 basis points.

The DIP facility will mature on the earliest of April 30, upon confirmation of a plan of reorganization, upon the sale of substantially all of the company's assets or upon the company's failure to meet the requirements of the sale process.

Summit will pay a $50,000 DIP facility fee, an $850-per-day collateral monitoring fee, plus expenses, and letter-of-credit fees of 3% of the outstanding face amount.

Based in Kenilworth, N.J., Summit provides supply chain management services in the United States, Asia, Russia, the Commonwealth of Independent States, the Eastern Mediterranean, the Middle East and India. The company filed for bankruptcy on Jan. 30. Its Chapter 11 case number is 08-11566.

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