The U.S. Bankruptcy Court issued a final order approving Walking Company Holdings’ post-petition financing motion.
As previously reported, “By this Motion, the Debtors seek authority to consummate a new $57.25 million senior, secured debtor-in-possession financing facility (the ‘DIP Facility’) with Wells Fargo Bank, National Association on the terms set forth in the DIP Agreement, consisting of a revolving facility in an amount up to $50 million and a term loan facility in an amount up to $7.25 million. The proceeds of the DIP Facility will be used to repay the existing Prepetition Revolving Credit Obligations and Prepetition Term Loan Obligations, and to provide continued access to financing for the Debtors on a postpetition basis pending consummation of the Debtors’ chapter 11 reorganization plan.” Revolver borrowings under the DIP Facility for purposes of the Interim Order shall not exceed $25 million. The term loan under the DIP Facility is subject to entry of the Final Order.”
Separately, the Court also approved the Company’s motion to (i) assume the exit facility commitment letter, (ii) pay and reimburse related fees and expenses, and (iii) indemnify the parties thereto. As previously reported, “The Debtors believe that the financing contemplated under the Exit Facility Commitment Letter is advantageous to the Debtors given the low interest rate that will be charged and the amount of liquidity (up to $55 million) that will be made available to the reorganized Debtors, subject to the borrowing base and other conditions set forth in the Exit Facility Commitment Letter….Notably, the Exit Facility Commitment Letter has the support of the Debtors’ principal existing secured lenders.”
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