Carla's Pasta gets court approval to access $750,000 of DIP facility

By Sarah Lizee

Olympia, Wash., Feb. 16 – Carla's Pasta, Inc. obtained court approval to access $750,000 of an up to $1.5 million debtor-in-possession revolving credit facility from pre-petition lenders BMO Harris Bank, NA and People’s United Bank, NA, according to an interim order filed Tuesday with the U.S. Bankruptcy Court for the District of Connecticut.

A final hearing is scheduled for Feb. 26.

Interest on the facility will be 4.5%, as previously reported.

The facility will mature on the earliest to occur of a termination event and April 30.

Proceeds will be used for normal operating expenses.

The company also secured court approval to continue using the cash collateral of its pre-bankruptcy lenders.

The South Windsor, Conn.-based pasta manufacturing company filed bankruptcy on Feb. 8 under Chapter 11 case number 21-20111.

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