CraftWorks wins final approval to access $25.38 million DIP facility

By Caroline Salls

Pittsburgh, May 22 – CraftWorks Holdings, LLC obtained final court approval to access $25.38 million in new-money debtor-in-possession financing from an affiliate of Fortress Credit Co. LLC, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the Fortress affiliate has committed to provide $23 million of new-money DIP financing, which will provide the liquidity necessary to support ongoing operations in the ordinary course during the Chapter 11 process.

The DIP financing package also includes an up to $115 million roll-up of pre-bankruptcy loans.

The facility will mature on the earliest of July 1, closing of a sale of all or substantially all of the company’s assets, termination of the commitments and acceleration of the loans, the Chapter 11 plan effective date and conversion or dismissal of the Chapter 11 cases.

Interest on the new-money facility will accrue at Libor plus 850 basis points.

Chattanooga, Tenn.-based CraftWorks operates and franchises full-service restaurants. The company filed bankruptcy on March 3 under Chapter 11 case number 20-10475.

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