Tuesday Morning announces receipt of competing DIP loan commitment

By Caroline Salls

Pittsburgh, June 25 – Tuesday Morning Corp. has received a competing offer for debtor-in-possession financing secured by its real estate assets, according to an amended motion filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

As a result, the company said it will give the competing lender and originally proposed lender BRF Finance Co., LLC an opportunity to submit a final offer on or before 1 p.m. ET on July 2.

Because of stronger-than-expected sales revenue, Tuesday Morning said its liquidity is greater than originally expected. As a result, the company said it has agreed to the official committee of unsecured creditors’ request to postpone consideration of the financing motion to July 8. The final hearing was previously scheduled for June 26.

To further accommodate the July 8 hearing date, the company said the DIP ABL agent has also agreed to an extension of the milestone in the DIP ABL credit agreement that would otherwise require Tuesday Morning to obtain additional DIP financing secured by the unencumbered real estate assets within 40 days of the bankruptcy filing date.

As previously reported, BRF has agreed to provide $25 million in DIP term loan financing. That facility would mature 180 days from Tuesday Morning’s bankruptcy filing and would accrue interest at Libor plus 900 basis points with a 1% Libor floor.

Tuesday Morning is a discount, off-price retailer based in Dallas. The company filed bankruptcy on May 27 under Chapter 11 case number 20-31476.

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