Reverse Mortgage Investment gets interim access to DIP financing

By Sarah Lizee

Olympia, Wash., Dec. 6 – Reverse Mortgage Investment Trust Inc. gained interim access to $13 million of debtor-in-possession financing from parent BNGL Holdings, LLC, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Following the interim order, $10 million may be funded within one day, and $3 million will be funded no later than Dec. 13.

The facility is set to mature on June 1, 2023.

Interest will accrue at the applicable Federal Funds rate, plus 200 basis points during the continuation of an event of default, to be payable in kind and compounded monthly.

The company said the proceeds will provide for near-term liquidity to operate and cover administrative expenses as the company pursues restructuring options.

The Bloomfield, N.J.-based reverse mortgage issuer filed Chapter 11 bankruptcy on Nov. 30 under case number 22-11225.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.