H2-Brands gets interim access to DIP financing, files bid procedures

By Sarah Lizee

Olympia, Wash., Feb. 1 – Nova Wildcat Shur-Line Holdings, Inc., doing business as H2-Brands, received interim approval to access $10 million of a $48.5 million debtor-in-possession facility and filed bid procedures for the sale of its assets, according to court documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The DIP financing is with the debtor’s existing prepetition secured lenders. PNC Bank, NA is the DIP agent.

Following a final order, the facility will include a roll-up of prepetition debt.

The facility is set to mature March 31, 2023.

Interest is a base rate plus 700 basis points. The base rate is the highest of the Prime rate, the overnight bank funding rate plus 0.5%, and daily simple SOFR plus 100 bps.

The company also received interim approval to use cash collateral.

Bid procedures

The company had started a prepetition marketing process for its assets in early December. As of the petition date, it executed non-disclosure agreements with 46 potential bidders.

The company is seeking court approval to choose a stalking horse bidder under the bid procedures. No bid protections were listed in the motion.

Under the proposed bid procedures, bids are due by 5 p.m. ET on March 15, an auction will be held on March 20, a sale hearing will take place on March 24, and the deadline to close the sale is March 31.

H2 Brands is a Cranbury, N.J.-based home and hardware products company. It filed bankruptcy on Jan. 29 under Chapter 11 case number 23-10114.

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