Ritz Camera Centers granted interim access to $85 million DIP loan; final hearing March 19

By Caroline Salls

Pittsburgh, Feb. 25 - Ritz Camera Centers, Inc. obtained interim access to its $85 million debtor-in-possession facility from Wachovia Bank, NA, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for March 19.

Ritz said the DIP financing is necessary to protect its going-concern value and fund its business and operations while the company completes its restructuring.

The DIP facility will mature on the earliest of Feb. 28, 2010, the effective date of the company's plan of reorganization or liquidation and upon completion of a sale of the company's assets.

Interest will be Prime rate plus 375 basis points for Prime rate loans and Eurodollar plus 400 bps for Eurodollar loans.

The company will pay a $1.7 million DIP facility fee, a $1.5 million closing fee and a $5,000-per-month servicing fee.

Ritz, a Beltsville, Md.-based specialty camera and image chain, filed for bankruptcy on Feb. 22. Its Chapter 11 case number is 09-10617.

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