Christmas Tree Shops gets interim approval of DIP loan, store closures

By Sarah Lizee

Olympia, Wash., May 10 – Christmas Tree Shops, LLC received interim approval of a $45 million debtor-in-possession facility and interim approval of a store-closing agreement, according to orders filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Christmas Tree Shops received a commitment for the DIP financing from Eclipse Business Capital SPV LLC and ReStore Capital LLC which will provide the company with enough financing to maintain normal business operations during the Chapter 11 process.

Interest on the facility is SOFR plus 775 basis points.

There is a 1% closing fee, a 0.5% commitment fee, an administrative fee of $7,000 per month, a 0.5% exit fee, and a $250,000 exit fee to ReStore.

The facility is set to mature on the earlier of Nov. 5, 2023 and the occurrence of a termination event.

The company also received interim approval to use the cash collateral of its prepetition lenders.

As part of the company’s restructuring process, it sought the court’s permission to close up to 10 underperforming stores.

Hilco Merchant Resources, LLC is acting as consultant for the sales.

A final hearing on both matters is scheduled for May 31.

Middleborough, Mass.-based Christmas Tree Shops sells home goods with a specialty focus on seasonal products. The company filed bankruptcy on May 5 under Chapter 11 case number 23-10576.

© 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.