CFM wins final courts approval for $8 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., May 22 - CFM U.S. Corp. was granted final court approval to obtain $8 million of debtor-in-possession financing from the Bank of Montreal, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the DIP loan includes a $500,000 sublimit for letters of credit.

Interest on Canadian dollar loans will be the BMO prime rate plus 400 basis points, and interest on U.S. dollar loans will be the base rate plus 400 bps.

The DIP facility will mature on June 30.

Proceeds will be used to pay DIP facility fees and expenses and to pay costs and expenses associated with the bankruptcy case and CFM's Companies' Creditors Arrangement Act proceeding.

A total of $3 million was made available for the period of May 4 to May 31, and borrowings after May 31 will be set by a weekly budget.

CFM will pay a $150,000 commitment fee.

Huntington, Ind.-based CFM designs, develops, manufactures and distributes hearth and heating products. The company filed for bankruptcy on April 9. Its Chapter 11 case number is 08-10668.

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