Health Diagnostic gets interim OK to use $6 million of DIP financing

By Caroline Salls

Pittsburgh, Aug. 7 – Health Diagnostic Laboratory, Inc. received interim access to $6 million of up to a proposed $12 million of debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The final hearing is scheduled for Aug. 24.

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 Oct. 3.

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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