Security National Properties given interim OK for DIP loan, cash use

By Caroline Salls

Pittsburgh, Feb. 11 - Security National Properties Funding III, LLC received continued interim access to its $3 million of debtor-in-possession financing under a 12th interim order entered on Feb. 11 by the U.S. Bankruptcy Court for the District of Delaware.

The unsecured notes will expire on the earliest of April 30, the effective date of the company's Chapter 11 plan and the occurrence of an event of default.

The 12th interim order requires a final, unstayed DIP financing order to be entered by May 5.

In addition, a 22nd interim order gave Security National approval to use the cash collateral of its pre-bankruptcy lenders through the earlier of March 14 and the plan effective date. At the final hearing, the company will seek access to the cash collateral through an outside date of May 31.

The hearing on final approval of the DIP loan and cash collateral use is scheduled for March 11.

Security National Properties Funding III is a Baton Rouge, La., affiliate of real estate investment company Security National Master Holding Co. It filed for bankruptcy on Oct. 13, 2011 under Chapter 11 case number 11-13277.

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