Gorham gets final court approval to access $1.5 million DIP facility

By Sarah Lizee

Olympia, Wash., Dec. 2 – Gorham Paper and Tissue, LLC received court approval to access a $1.5 million debtor-in-possession facility, according to a final order filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

Additionally, the company secured court approval to access the cash collateral of its pre-bankruptcy secured lenders.

Gorham DIP Financing, LLC is the lender, as previously reported.

The facility will mature the earliest of three months from the date of final court approval of the facility, the date that the debtors’ assets are sold, the effective date of a plan, the date the cases are converted or the date of an event of default.

Interest is six-month Libor plus 600 basis points.

Proceeds will be used to fund the Chapter 11 cases and for normal business operations.

Gorham, N.H.-based Gorham Paper and Tissue manufactures towel and tissue rolls for at-home and away-from-home markets. The company filed bankruptcy on Nov. 4 under Chapter 11 case number 20-12814.

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