Goody's Family Clothing granted interim access to DIP loan; final hearing July 15

By Caroline Salls

Pittsburgh, June 11 - Goody's Family Clothing Inc. was granted interim access to its $210 million in debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for July 15.

DIP facility proceeds will be used to supplement the company's working capital and provide adequate liquidity during the reorganization process.

The financing includes a $175 million revolving credit facility from General Electric Capital Corp., $15 million in DIP financing under a term loan facility from GB Merchant Partners, LLC and $20 million in DIP financing under a junior term loan facility from PGDYS Lending LLC.

Interest on the revolver will be the index rate plus 175 basis points or Libor plus 275 bps. Interest on the term loan will be 14%, and interest on the tranche C loan will be 15%.

The DIP facility will mature on the earlier of 45 days after the bankruptcy filing if a final order has not been entered and the effective date of a plan of reorganization or 60 days following confirmation of a plan.

Goody's, a Knoxville, Tenn., family apparel retailer operating in small- to mid-size markets primarily in the Southeast, filed for bankruptcy on June 9. Its Chapter 11 case number is 08-11133.

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