Big M wins interim approval for access to $6.2 million DIP facility

By Jim Witters

Wilmington, Del. Jan. 8 - Big M, Inc. won interim access to $6.2 million in debtor-in-possession financing, according to documents filed Jan. 8 with the U.S. Bankruptcy Court for the District of New Jersey.

The financing from Salus Capital Partners, LLC includes a $10 million senior secured revolver - of which $3 million will be available on an interim basis - and a $3.2 million term loan.

Interest on the revolver will be Base rate plus 575 basis points. Interest on the term loan will be 8%.

The loan will mature on the earliest of 270 days after closing, upon written notice of an event of default and the company's emergence from Chapter 11.

The DIP agreement requires the company to file a sale motion or a plan of reorganization under which the lender would be paid in full within 180 days of the bankruptcy filing date.

No hearing has been scheduled for final DIP approval.

Big M operates the Mandee, Annie Sez and Afaze retail stores.

Big M, a New Jersey-based women's clothing chain owner, filed for bankruptcy on Jan. 7. The Chapter 11 case number is 13-10233.

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