The U.S. Bankruptcy Court issued an interim order approving rue21’s emergency financing motion.
As previously reported, “The DIP ABL Lenders agreed to issue in the aggregate principal amount of $125 million, including (a) a $25 million sublimit for the issuance of Letters of Credit and (b) a $15 million sublimit for Swing Line Loans, pursuant to the Interim Order…the DIP Term Loan Lenders agreed in the aggregate maximum principal amount of $140 million (on an interim basis [including $40 million in new money]) and $150 million (on a final basis [including $50 million in new money]), in each case subject to and pursuant to the terms and conditions set forth in the DIP Orders and the DIP Term Loan Documents…initial new money commitment is of $20,000,000, additional new money loans: second draw: $20,000,000, final draw: $10,000,000, roll-up loans: $100,000,000. Pursuant to the terms of the DIP Term Loan Documents, $100 million of the DIP Term Loan Lenders’ Prepetition Term Loans will be converted into DIP Term Loans, at a 2:1 roll-up to new money ratio, pursuant to the Interim Order, and subsequently converted into 77% of the common stock in the reorganized Debtors at their emergence from chapter 11.”
The Court scheduled a June 12, 2017 final hearing, with responses due by June 5, 2017.
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