CiCi's Holdings gets court approval of $750,000 of DIP financing

By Sarah Lizee

Olympia, Wash., Jan. 28 – CiCi's Holdings, Inc. received court approval to access $250,000 of new money loans and $500,000 of roll-up loans under a debtor-in-possession financing facility, according to an interim order filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company is seeking final approval to enter into the up to $9 million DIP facility provided by pre-petition lender D&G Investors, LLC. The facility is comprised of $3 million of new credit and a deemed term loan roll up of $6 million of pre-petition credit agreement claims.

The DIP facility will mature on the earliest of 75 days after the petition date, the closing date of any sale for all or substantially all of the borrower’s assets, the consummation of a plan, and the date of acceleration of the DIP loans. The facility will bear interest at 15%, payable in kind.

Up to $9 million of DIP claims and an amount to be determined of pre-petition credit agreement claims may be converted into a new exit facility.

The company also received court approval to use the cash collateral of its pre-petition lenders on an interim basis.

A final hearing is scheduled for Feb. 16.

CiCi's Holdings is a pizza buffet chain based in Dallas. The company filed bankruptcy on Jan. 25 under Chapter 11 case number 21-30146.

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