Velti interim DIP financing approved; bid procedures hearing Nov. 18

By Caroline Salls

Pittsburgh, Nov. 5 - Velti Inc. received interim court approval to obtain debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Dec. 2.

The total $26.25 million DIP financing amount includes a $10 million cash injection to support the operations included in a proposed sale, $15 million total principal amount of loans outstanding under the company's pre-bankruptcy credit agreement and $1.25 million of fees to be paid in kind and added to the outstanding principal amount of the DIP loans.

Under the interim order, the debtor borrowers were granted access to up to $2.16 million of financing, plus any fees and expenses incurred by the agent and lenders before entry of the final order, and are obligated in connection with $4.17 million to be borrowed by non-debtor borrowers before entry of the final order.

U.S. Bank, NA is the administrative agent.

The facility will mature on the earliest of 30 days after entry of the interim order if the final order has not been entered, Dec. 31, subject to the borrower's election to extend that date to Jan. 30, the effective date of a Chapter 11 plan, the closing of the sale and the acceleration of the DIP loans.

Interest will be 12%.

In addition, the court scheduled the hearing for approval of Velti's asset sale procedures for Nov. 18.

Based in London, Velti plc provides mobile software platforms, applications and services for operators and advertising agencies in southeastern Europe, the United Kingdom and the United States. The U.S. operations filed for bankruptcy on Nov. 4 under Chapter 11 case number 13-12878.

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