Wornick $35 million DIP loan approved

By Caroline Salls

Pittsburgh, March 14 - Wornick Co. obtained final court approval of its $35 million debtor-in-possession facility from DDJ Capital Management, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

On Feb. 15, Wornick was granted interim access to $5 million of the DIP loan, plus the amount needed to pay off its pre-bankruptcy credit facility.

Interest will be Libor plus 765 basis points.

Wornick will pay a $44,000 initial administrative agent fee, a $39,000 annual administrative agent fee and a $75,000 commitment fee.

The DIP facility will mature on the earliest of the plan of reorganization effective date, the date of the sale of all of the equity of reorganized Wornick and the date of a sale of substantially all company assets.

Proceeds will be used to fund ongoing working capital needs.

Wornick, a Cincinnati-based food processing and packaging company, filed for bankruptcy on Feb. 14. Its Chapter 11 case number is 08-10654.

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