87 Jacobus Ave gets approval of $16 million DIP financing

By Sarah Lizee

Olympia, Wash., Aug. 9 – 87 Jacobus Ave LLC received approval of a $16 million debtor-in-possession facility with Snowpoint Capital LLC, according to an order filed with the U.S. Bankruptcy Court for the District of New Jersey.

The company said the loan will provide it with an opportunity to satisfy its prepetition real estate tax lien obligations to the town of Kearny, N.J., with the DIP lender to be subrogated to and to replace Kearny as the holder of a first priority lien against the property.

The debtor said this will remove the threat of foreclosure of the property.

The facility is set to mature in 60 months from the closing date and bear interest at 7% per annum. There is a 2% closing fee.

The Hudson, N.J.-based company filed bankruptcy on June 7 under Chapter 11 case number 23-14955.

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