Gissing North America gets access to $8.8 million of DIP revolver

By Sarah Lizee

Olympia, Wash., Aug. 15 – Gissing North America LLC secured interim access to $8.8 million of a proposed $30 million debtor-in-possession revolving credit facility, according to an interim order filed Friday with the U.S. Bankruptcy Court for the Eastern District of Michigan.

As previously reported, the company said that after negotiations with its prepetition secured lenders, including Huntington National Bank, and its major customers, it reached an agreement on the terms of a multi-source financing agreement that addresses the debtors’ liquidity needs during a sale process.

Huntington National Bank is the DIP agent and collateral agent. General Motors LLC and Tesla, Inc. have agreed to purchase subordinated participations in the DIP facility.

Gissing is seeking interim access to $8.8 million of the DIP revolver.

The facility is set to mature on Oct. 31 and bear interest at the Prime rate plus 300 basis points. The default rate is an additional 500 bps.

There is a $300,000 commitment fee.

The financing includes certain milestones for the debtor, including filing bid procedures for its assets by Aug. 19, holding an auction by Oct. 11 and a sale hearing by Oct. 17, and closing the sale by Oct. 31.

A final hearing is scheduled for Aug. 24.

The Bingham Farms, Mich.-based company is a manufacturer of acoustic systems for the automotive industry. The company filed bankruptcy on Aug. 8 under Chapter 11 case number 22-46160.

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