Townsends granted interim court approval of $52 million DIP facility

By Caroline Salls

Pittsburgh, Dec. 23 - Townsends, Inc. has been granted interim access to $47 million of its proposed $52 million of debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Jan. 13.

The company said the financing will enable normal operation of its business, including the timely payment of employee wages and other obligations.

The loan includes a $12 million revolving credit facility and a roll-up of the company's $40 million pre-bankruptcy revolver.

Wilmington Trust Co. is the administrative agent.

Interest will be Libor plus 670 basis points, with a 2.5% Libor floor.

The facility will mature on the earlier of 90 days after the closing of the interim DIP order and March 29.

Townsends, a Georgetown, Del.-based poultry processor, filed for bankruptcy on Dec. 19. Its Chapter 11 case number is 10-14092.

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