Wickes granted interim approval of $30 million DIP facility; final hearing set for Feb. 28

By Caroline Salls

Pittsburgh, Feb. 6 - Wickes Holdings, LLC obtained interim court approval of its $30 million in 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 Feb. 28.

The DIP facility includes a $5 million sublimit for letters of credit.

Wells Fargo Retail Finance LLC is the collateral agent and administrative agent.

The DIP facility will mature on the earliest of 25 days from the closing date if a final order has not been entered, 120 days from the closing date unless a plan of reorganization has been filed that provides for payment of the DIP facility in full, in which cash the DIP facility would mature on the plan effective date, upon occurrence of an event of default and on the date of a sale of substantially all of the company's assets.

Proceeds will be used for working capital and general corporate purposes.

According to the motion, interest on the DIP facility will be Base rate plus the applicable margin, but the margin was not specified.

Wickes will pay a $300,000 closing fee and a $3,000 monthly servicing fee.

Wickes, a Wheeling, Ill., furniture retailer, filed for bankruptcy on Feb. 3. Its Chapter 11 case number is 08-10212.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.