AmeriMark seeks approval of DIP financing, bid procedures

By Sarah Lizee

Olympia, Wash., April 12 – AmeriMark Interactive, LLC is seeking approval of a $48 million senior secured super-priority debtor-in-possession revolving credit facility via its prepetition secured lenders, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

PNC Bank, NA is the administrative agent and swingline lender.

The company is seeking interim access to $7.4 million of the facility.

Upon entry of the interim order, the DIP facility will include an interim roll-up, at the discretion of the DIP agent, of the debtors’ obligations under its prepetition revolver on a dollar-for-dollar basis. Upon entry of the final order, the remaining outstanding amount under the prepetition revolver will be rolled up on a cashless dollar-for-dollar basis into loans under the DIP facility.

Interest on the DIP facility is equal to the base rate plus 475 basis points.

The DIP facility is set to mature on May 30.

The company is also seeking court approval to access cash collateral of the prepetition lenders.

Bid procedures

The company also filed a motion Tuesday seeking approval of bid procedures for the sale of its assets.

AmeriMark said it is engaged with several groups of potential purchasers.

Under the proposed bid procedures, the debtors would have until 5 p.m. ET on May 10 to file a stalking horse supplement, the bid deadline would also be 5 p.m. ET on May 10, an auction would be held on May 18, and a sale hearing would take place on May 25.

The deadline to close the sale would be May 30.

AmeriMark is a Cleveland-based direct marketer of women's apparel, shoes, cosmetics, fragrances, jewelry, watches, accessories and health-related merchandise. The company filed bankruptcy on April 11 under Chapter 11 case number 23-10438.

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