GigaMonster Networks gets OK to draw $3.5 million from DIP facility

By Sarah Lizee

Olympia, Wash., Jan. 18 – GigaMonster Networks, LLC received interim approval to access $3.5 million of a $5.8 million debtor-in-possession facility, according to an interim order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The agent and lender is M/C Partners VIII, LP.

The company will use the proceeds to continue operating in Chapter 11 pending a sale process.

The facility is a multi-draw term loan set to mature 60 days from the petition date, or earlier depending on certain events.

Interest is 18%, payable in kind pending the maturity date. Default interest would be an additional 2%.

There is a 6% origination fee, payable in kind and earned upon entry of the interim order.

The company also received interim approval to use cash collateral. Adequate protection has been granted to prepetition secured parties.

A final hearing is scheduled for Feb. 13.

The Marietta, Ga.-based internet provider filed bankruptcy on Jan. 16 under Chapter 11 case number 23-10051.

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