Nutritional Sourcing granted interim approval of $35 million DIP facility; final hearing Aug. 23

By Caroline Salls

Pittsburgh, Aug. 7 - Nutritional Sourcing Corp. obtained interim court approval of its $35 million in debtor-in-possession financing from Westernbank Puerto Rico, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final DIP hearing is scheduled for Aug. 23.

As previously reported, under the DIP agreement, the company's total outstanding pre-bankruptcy and post-bankruptcy credit agreement balance cannot exceed $103.5 million.

The DIP facility will mature on the earliest of Jan. 31, 2009, upon confirmation of a plan of reorganization and Sept. 14 if a final DIP order has not been entered.

Interest will be Prime rate plus 150 basis points.

Nutritional Sourcing operates a supermarket chain and a video rental store chain in Puerto Rico and the U.S. Virgin Islands. The company filed for bankruptcy on Aug. 3. Its Chapter 11 case number is 07-11038.

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