Handy Hardware's $30 million DIP facility wins final court approval

By Jim Witters

Wilmington, Del., Feb. 5 - Handy Hardware Wholesale, Inc. received final approval for its $30 million debtor-in-possession financing facility during a Feb. 5 hearing in the U.S. Bankruptcy Court for the District of Delaware.

The $30 million DIP financing comes from Handy's pre-petition operating capital lender Wells Fargo Bank, NA.

Interest will be Libor plus 700 basis points.

The loan will mature on the earliest of 180 days from the bankruptcy filing date, the effective date of a plan of reorganization, 35 days after entry of an interim order if a final hearing has not been held, 24 hours after the final hearing if a final order has not been entered and occurrence of an event of default.

The financing agreement requires the company to file its plan and related disclosure statement within 60 days of the bankruptcy filing, to obtain confirmation within 175 days and to have the plan take effect within 180 days.

The DIP agreement and inter-creditor agreements maintain Capital One's first-priority liens on Handy's property, plant and inventory. Wells Fargo holds first liens on all operating cash of the company.

Handy Hardware is a hardware retailer co-operative based in Houston. Its Chapter 11 case number is 13-10060.

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