Butler International gets court OK of asset sale, $30 million DIP loan

By Jennifer Lanning Drey

Portland, Ore., July 2 - Butler International, Inc. received court approval of the $26.88 million sale of substantially all of its assets to Butler America, LLC, an affiliate of Select Staffing chairman and chief executive officer D. Stephen Sorensen, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company received no qualified bids from other parties for the assets, according to the filing.

As previously reported, Butler America has also agreed to assume some of Butler's liabilities.

DIP loan details

Butler also received final court approval to obtain a $30 million debtor-in-possession facility from General Electric Capital Corp., according to a separate Wednesday filing.

Butler's DIP facility includes a $50,000 sublimit for swingline loans.

Interest will be Libor plus 800 basis points, and interest on swingline loans will accrue at the Index rate plus 775 bps.

The DIP loan will mature on Dec. 4, 2009, or earlier if the company closes on the asset sale before then.

Butler International is a Fort Lauderdale, Fla.-based provider of outsourcing services. Its Chapter 11 case number is 09-11914.

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