Inner City Media gets interim access to $3 million of DIP financing

By Caroline Salls

Pittsburgh, March 26 - Inner City Media Corp. has been granted interim access to up to $4 million of its proposed $3 million in debtor-in-possession financing, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for April 19.

Cortland Capital Market Services LLC is the administrative agent, and the DIP lenders are Yucaipa Corporate Initiatives Fund II, LP, Yucaipa Corporate Initiatives (Parallel) Fund II, LP and Fortress Credit Corp.

The facility will be comprised of a $2.2 million construction term loan and an $800,000 working capital term loan.

The construction loan will be used for paying DIP facility fees and expenses and paying expenses associated with relocating the company's corporate headquarters.

The DIP loan will mature on the earliest of Dec. 31, 2012, 30 days after the interim order if a final order has not been entered and the closing of a sale of substantially all company assets.

Interest will be Libor plus 750 basis points, with a 2% Libor floor.

Inner City Media is a New York-based radio company. An involuntary bankruptcy case was filed against it on Aug. 19, 2011. The Chapter 11 case number is 11-13967.

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