C & K Market: court approves final access to $23 million DIP loan, liquidation of 21 stores

By Lisa Kerner

Charlotte, N.C., Dec. 19 - C & K Market Inc. received final approval from the U.S. Bankruptcy Court for the District of Oregon to access a $23 million debtor-in-possession facility, according to an attorney familiar with the case.

In November, the company received interim court approval to use $7 million of the facility.

As previously reported, U.S. Bank NA will provide the DIP financing.

The DIP facility will be comprised of a secured revolving line of credit in a total principal amount equal to the lesser of $23 million, the borrowing base for each day plus $12 million or the sum of the amounts set in the budget for each day under the "projected ending revolver balance" and DIP ending balance line items, plus $4 million, plus the unrealized sale amount for that day.

The facility will bear interest at the rate applicable to revolving loans, which the company said is usually Libor plus 250 basis points to Libor plus 300 bps.

The DIP financing will mature on the earliest of one year from the bankruptcy filing date, the closing of a sale of all or substantially all of the company's assets and the plan of reorganization effective date.

Also on Thursday, the court approved C & K's request to hold closing sales to liquidate the assets at 21 stores being closed, according to the attorney.

C & K, a Brookings, Ore.-based supermarket company, filed for bankruptcy on Nov. 19. The Chapter 11 case number is 13-64561.

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