The U.S. Bankruptcy Court issued an order on a final basis approving Bertucci’s post-petition financing motion.
As previously reported, “The Debtors have secured a debtors-in-possession credit facility in a maximum principal amount of up to $4,000,000 through May 31, 2018 (46 days after the petition date). To continue operating in the ordinary course while formulating and seeking approval of the terms of a sale of substantially all of the Debtors’ assets pursuant to Bankruptcy Code section 363 during this period, the Debtors need to access liquidity. The Debtors will obtain this liquidity from the DIP Facility….In fact, without the DIP Facility, the Debtors would not be able to operate at all for more than a few days into these Chapter 11 Cases. Therefore, additional financing is necessary to maintain the value of the Debtors’ businesses and, ultimately, effectuate a successful sale and reorganization process….Such approval is requested on an interim basis, for funding up to $750,000, which the Debtors require over the next several weeks, and on a final basis, for funding up to a total of $4,000,000, which the Debtors require to operate through the contemplated conclusion of their proposed sale process.”
Stalking horse bidder Right Lane Dough Funding will serve as post-petition lender, and the financing will bear an interest rate of 14% per annum.
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