Hollander gets court approval to access $15 million of DIP financing

By Sarah Lizee

Olympia, Wash., May 23 – Hollander Sleep Products, LLC gained court approval to access up to $15 million of debtor-in-possession financing, according to an interim order filed Thursday by the U.S. Bankruptcy Court for the Southern District of New York.

The company also received court approval to use cash collateral on an interim basis.

As previously reported, the company secured $118 million of debtor-in-possession financing, including $28 million of incremental new money and an additional $30 million of committed exit financing to support a full range of business improvement initiatives once the company exits from bankruptcy.

Both the new money DIP financing and the exit financing were provided by a group of the company’s existing term lenders.

The balance of the DIP financing is funded through a $90 million DIP asset-based facility provided by the company’s prepetition ABL lenders, led by Wells Fargo Bank.

These funds and Hollander’s cash from operations are expected to provide ample liquidity during the Chapter 11 process to maintain normal operations, the company said.

The Boca Raton, Fla.-based company designs, manufactures and markets utility bedding products. It filed for Chapter 11 bankruptcy on May 19. The case number is 19-11608.

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