Sears Methodist DIP loan, cash collateral use extended through Jan. 18

By Caroline Salls

Pittsburgh, Dec. 31 – Sears Methodist Retirement System, Inc.’s debtor-in-possession financing maturity date and cash collateral use were extended under a stipulation with master trustee and bond trustee Wells Fargo Bank, NA, according to a Dec. 31 filing with the U.S. Bankruptcy Court for the Northern District of Texas.

Specifically, the DIP loan maturity date and cash collateral use were extended through Jan. 18 from Jan. 4.

Sears Methodist said the dates were extended in light of continuing negotiations and Chapter 11 plan and sale-related transactions.

In addition, debtor Sears Caprock Retirement Corp. entered into a stipulation with Santander Bank, NA that extends Sears Caprock’s cash collateral use through Feb. 1 from Dec. 31.

Until Santander obtains approval for an extension of the Jan. 4 maturity date of the company’s debtor-in-possession financing, it has agreed that no amounts are immediately due and owing under the DIP credit agreement.

Sears Methodist is a Dallas-based nonprofit senior living provider that filed for bankruptcy on June 10. The Chapter 11 case number is 14-32821.

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