Legacy Cares gets further access to cash collateral, DIP financing

By Sarah Lizee

Olympia, Wash., May 31 – Legacy Cares, Inc. was granted further access to its cash collateral on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Arizona.

The debtor was also authorized to continue using a debtor-in-possession credit facility on an interim basis with UMB Bank, NA.

UMB is receiving security for the facility in the form of security interests and liens on all property of the estate with the same priority as UMB’s liens on the petition date, junior liens on all property of the estate and senior liens on all property of the estate that was unencumbered on the petition date.

As previously reported, Legacy Cares is seeking final court approval of a $9 million DIP facility with UMB as trustee.

Interest on the facility is 12% per annum. Default interest would jump up to 14%.

There is a fee on 2% of the total borrowing cap.

The facility is set to mature on Sept. 30, subject to earlier maturity following certain events.

The company was seeking interim access to $1.6 million of the facility.

Legacy Cares is a non-profit corporation that owns Legacy Park, formerly known as Bell Bank Park, a 320-acre sports and entertainment complex in Mesa, Ariz. The company filed bankruptcy on May 1 under Chapter 11 case number 23-02832.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.