Gawker Media requests court approval of $22 million in DIP financing

By Caroline Salls

Pittsburgh, June 13 – Gawker Media LLC requested court approval to obtain up to $22 million in debtor-in-possession financing, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The financing is comprised of a $17 million term loan and a $5 million revolving credit facility.

Cerberus Business Finance LLC is the administrative and collateral agent.

The loans will bear interest at the Reference Rate plus 700 basis points or Libor plus 800 bps.

The facility will mature on the earliest of 30 days from the date of the interim order if the final order has not been entered, 12 months following entry of the interim order, the effective date of a plan of reorganization and the sale of substantially all of Gawker’s assets.

The company is seeking interim access to $14 million of the financing.

Gawker, a New York-based online media company, filed bankruptcy on June 10. The Chapter 11 case number is 16-11700.

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