Health Diagnostic secures commitment for $12 million in DIP financing

By Caroline Salls

Pittsburgh, Aug. 3 – Health Diagnostic Laboratory, Inc. requested court approval to obtain up to $12 million of debtor-in-possession financing, according to a Sunday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Health Diagnostic said it needs immediate access to liquidity in order to continue operations during its Chapter 11 cases and complete the process for marketing and selling substantially all of its businesses or entering into a strategic transaction.

CVF Beadsea LLC is the administrative and collateral agent for the DIP financing.

Interest will be Libor plus 850 basis points.

The facility will mature on the earliest of Aug. 21 if the final order has not been entered, Oct. 3 if the final order is entered by Aug. 21, the closing of a sale of the company’s assets, the effective date of a Chapter 11 plan and the date the loans become due and payable.

The company is seeking interim access to $6 million of the DIP financing.

Health Diagnostic, a Richmond, Va.-based blood testing company, filed for bankruptcy on June 7. The Chapter 11 case number is 15-32919.

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