Champion Enterprises granted access to $5 million more of DIP loan

By Caroline Salls

Pittsburgh, Dec. 30 - Champion Enterprises, Inc. has received the necessary signatures to enforce a first amendment to its debtor-in-possession credit agreement with Credit Suisse AG, Cayman Islands Branch that will give the company interim access to an additional $5 million in new money loans, according to an 8-K filed with the Securities and Exchange Commission.

Champion said the total amount of the DIP credit agreement remains unchanged.

Also under the first amendment, a sale motion milestone has been extended to Jan. 8.

According to the 8-K, the U.S. Bankruptcy Court for the District of Delaware entered a second interim order on Dec. 18 that allowed the company to draw $30.335 million of new money loans under the $40 million DIP credit agreement.

Now, the company can draw an additional $5 million of new money loans on an interim basis.

The final hearing on the DIP facility is scheduled for Jan. 6.

Champion, a Troy, Mich.-based producer of manufactured and modular homes, as well as modular buildings for government and commercial applications, filed for bankruptcy on Nov. 15. The Chapter 11 case number is 09-14019.

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