Mercon Coffee gets interim approval to access cash collateral

By Sarah Lizee

Olympia, Wash., Dec. 14 – Mercon Coffee Corp. received interim approval to access cash collateral, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

Cooperatieve Rabobank UA, New York Branch has an interest in the collateral.

The debtors currently have about $363.34 million in outstanding funded debt, including $202.55 million under a revolver due 2024 with Rabobank.

The company is also seeking approval of a $40 million super-priority senior secured debtor-in-possession financing package with Rabobank. Of the amount, $20 million is a rollup of prepetition debt.

Mercon is seeking interim access to $10 million of the new money under the facility.

Interest is the Base rate plus 900 basis points per annum, payable in cash or in kind.

The facility is set to mature in six months.

Based in the Netherlands, Mercon is a vertically integrated global green coffee supplier. It filed bankruptcy under Chapter 11 case number 23-11945.

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