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Solavei wins extended access to cash collateral through December 31
By Kali Hays
New York, Sept. 24 – Solavei, LLC received approval on continued use of the cash collateral of its pre-bankruptcy lender Opus Bank through Dec. 31, according to a Sept. 24 order with the U.S. Bankruptcy Court for the Western District of Washington.
As previously reported, Solavei sought the continued use of the cash collateral to “minimize disruption and to avoid termination of its operations” as it will be unable to meet working capital needs without it, according to the motion.
As part of the cash collateral, the company will continue with a fund that was implemented with the initial cash collateral budget which secures the payment of professionals employed by Solavei and its unsecured creditors committee.
The fund will continue to be maintained by its bankruptcy counsel, Bush Strout & Kornfeld LLP.
Opus Bank agreed to a monthly payment to the professional fund up to $50,000.
Solavei agreed to adhere to a weekly budget with fixed amounts of payable expenses that are not to exceed 5% of the fixed amount per week.
Solavei will also provide the court, Opus Bank and T-Mobile USA, Inc., which provides it mobile service on a wholesale basis, a weekly report of its business operations as part of the cash collateral agreement.
Solavei, a social commerce telecommunications company with headquarters in Bellevue, Wash., filed for bankruptcy on June 11. The Chapter 11 case number is 14-14505.
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