Dan River $32 million DIP facility approved

By Caroline Salls

Pittsburgh, June 17 - Dan River, Inc. obtained final approval of its $32 million debtor-in-possession facility from GMAC Commercial Finance LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The term of the DIP facility is 13 weeks, subject to extension.

Proceeds will be used to fund the company's continuing operations.

Interest will be Base rate plus 400 basis points.

Dan River will pay a $500,000 DIP fee.

Under the DIP loan agreement, GMAC will continue to purchase all accounts receivable generated by Dan River from the sale of merchandise in connection with a pre-bankruptcy factoring agreement.

Dan River, a Danville, Va.-based textile company, filed for bankruptcy on April 20. Its Chapter 11 case number is 08-10726.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.