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

By Jennifer Lanning Drey

Portland, Ore., Oct. 10 - Vicorp Restaurants, Inc. was granted court approval to increase the availability under its $60 million debtor-in-possession facility by $7 million, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

When requesting the approval, the company said its senior DIP lenders have approved a 13-week budget that calls for the sale of a substantial portion of Vicorp's assets.

The company said the extra financing will allow it to meet its working capital requirements until the sale is complete.

Under the terms of the DIP amendment, the asset sale must close by Jan. 31.

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.

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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