Bruno's granted interim approval of new $19 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., March 2 - Bruno's Supermarkets, LLC received interim court approval of a $19 million debtor-in-possession facility from Regions Bank, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Alabama.

The financing replaces Bruno's prior $6.7 million DIP facility, which was meant to serve as a bridge loan through Feb. 28, according to the filing.

The new financing will mature on the earliest of May 31, confirmation of an acceptable plan of reorganization, the effective date of a sale of all or a substantial part of the personal property collateral or real collateral, the date either party terminates the loan, the date the lender is granted relief from automatic stay and the date of a case dismissal or conversion to Chapter 7.

Interest is Base Rate plus 400 basis points.

Bruno's will pay a $380,000 closing fee.

The final hearing is scheduled for March 25.

Bruno's, a Birmingham, Ala., owner and operator of Bruno's and Food World, filed for bankruptcy on Feb. 5 in the U.S. Bankruptcy Court for the Northern District of Alabama. Its Chapter 11 case number is 09-10368.

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