Cache granted final access to $22 million DIP loan with reduced fees

By Kali Hays

New York, May 20 – Cache, Inc. received final approval to access up to $22 million of debtor-in-possession financing and use cash collateral, according to a Wednesday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company received interim access to $8.53 million of the loan on Feb. 5.

Cache intends to use the financing to continue operations while in bankruptcy.

Salus Capital Partners, LLC is the agent and lender.

Interest on the facility will be Libor plus 550 basis points.

Under the order, Salus’ closing fee is reduced to $150,000 from $300,000 and its monthly DIP maintenance fee is reduced to $10,000 from $120,000. No exit fee will be permitted.

In a Feb. 19 objection, Cache’s official committee of unsecured creditors took issue with the fees and interest included in the DIP agreement, claiming that payment of the fees would put the company on a “path to administrative insolvency.”

Cache, a mall-based chain retailer of formal womenswear based in New York, filed for bankruptcy on Feb. 4. The Chapter 11 case number is 15-10172.

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