WMC Mortgage gets approval to access full $25 million DIP financing

By Sarah Lizee

Olympia, Wash., May 20 – WMC Mortgage, LLC obtained court approval to access $25 million in debtor-in-possession financing, according to a final order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, GECUSH has agreed to provide the financing to fund the projected costs of the Chapter 11 case and enable WMC to pay salaries and benefits of its employees, other ordinary course post-bankruptcy obligations, conduct negotiations with key constituents, complete a General Electric Co. settlement and confirm a plan.

The company had previously gained approval to access $750,000 of the DIP financing on an interim basis on April 24.

Interest will accrue at a rate of Libor plus 500 basis points.

The facility will mature on the earliest of Jan. 23, 2020, the effective date of a Chapter 11 plan, the date of acceleration of the DIP financing obligations, the occurrence of an event of default and the date of the filing of a plan that is not acceptable to the lender.

WMC is a Woodland Hills, Calif.-based mortgage originator. The company filed bankruptcy on April 23 under Chapter 11 case number 19-10879.

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