Powermate granted final court approval of $15 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., April 15 - Powermate Corp. obtained final court approval of its $15 million debtor-in-possession financing on Tuesday from the U.S. Bankruptcy Court for the District of Delaware, according to an attorney.

Wachovia Bank, NA is the administrative agent.

As previously reported, the DIP facility will mature on the earlier of May 31, 2008 and upon confirmation of the company's plan of reorganization.

The company will pay a $500,000 DIP financing fee.

Powermate was granted interim access to the DIP facility on March 18.

Proceeds will be used to pay Powermate's expenses during its bankruptcy case.

Powermate is an Aurora, Ill.-based manufacturer of portable and standby electric generators, air compressors, air tools, pressure washers and accessories. Its Chapter 11 case number is 08-10498.

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