DecisionOne receives approval to use cash collateral, gains emergency access to DIP

By Ellen Chang

Houston, March 17 - DecisionOne Corp. received approval for emergency access to its debtor-in-possession financing and to use cash collateral, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The court also said the confirmation hearing to consider its disclosure statement and prepackaged plan of reorganization is scheduled for April 19.

DecisionOne has a commitment for a $25 million debtor-in-possession facility. The court authorized the use of the loan plus the use of cash collateral. Availability will be subject to a borrowing base.

Wells Fargo Foothill, Inc. is administrative agent and collateral agent for the DIP facility.

Interest will be at Libor plus 350 basis points and there is a 50 basis points unused line fee.

The loan will run for nine months unless DecisionOne exits Chapter 11 earlier.

Proceeds will be used to repay the pre-bankruptcy revolver, for general corporate purposes and for fees and expenses.

DecisionOne made a prepackaged Chapter 11 filing March 15 after failing to achieve an out-of-court debt restructuring.

The Frazer, Pa., provider of information technology support services filed for Chapter 11 on Tuesday. Its case number is 05-10723.

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