Karmaloop wins emergency access to DIP loan, lenders’ cash collateral

By Kali Hays

New York, March 25 – Karmaloop, Inc. received emergency interim access to $29.07 million of a proposed $30.87 million debtor-in-possession facility and the use of cash collateral under a March 25 order from U.S. Bankruptcy Court for the District of Delaware.

A final approval hearing is set for April 15.

As previously reported, Karmaloop’s pre-bankruptcy lenders are providing the financing and ComVest Capital II, LP is the agent.

The financing will be used to repay pre-bankruptcy loan obligations and to provide working capital to the company.

The DIP facility will mature 90 days from entry of the interim order.

Interest will be 12%.

Karmaloop, a Boston-based cross-platform digital commerce and media property company specializing in the sale of global streetwear fashion and culture, filed for bankruptcy on March 24. The Chapter 11 case number is 15-10635.

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