Vicorp requests court OK for additional $7 million in DIP financing

By Caroline Salls

Pittsburgh, Oct. 9 - Vicorp Restaurants Inc. requested court approval to increase the availability under its $60 million debtor-in-possession facility by $7 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the company's senior DIP lenders have approved a 13-week budget that calls for the sale of a substantial portion of Vicorp's assets.

Under the terms of the amendment, the asset sale must close by Jan. 31. The company said the extra financing will allow it to meet its working capital requirements until the sale is complete.

Interest on the amended DIP facility will be either Libor plus 1,500 basis points or Base rate plus 1,100 bps.

Vicorp will pay a $300,000 amendment fee.

The hearing is scheduled for Oct. 10.

Vicorp, a Denver-based restaurant operator, filed for bankruptcy on April 3, 2008. Its Chapter 11 case number is 08-10623.

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