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Pacific Sunwear of California Financing Amended

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Pacific Sunwear of California filed with the U.S. Bankruptcy Court a fourth amendment to its debtor-in-possession financing agreement.

According to documents filed with the Court, “The Prepetition Term Loan Agent has consented to the Fourth Amendment, in accordance with paragraph 12(d) of the Final DIP Order, which provides as follows: (d) Modifications to the DIP Credit Agreement.”

The motion continues, “The Prepetition Term Loan Agent shall receive additional adequate protection in the form of a consent right (such consent not to be unreasonably withheld or delayed in the case of consent requests regarding the Chapter 11 Case milestones described in clause 3 below only) to any (direct or indirect) amendment, modification or waiver of any terms or conditions under the DIP Credit Agreement or any other DIP Loan Documents, as and to the extent provided for in the Intercreditor Agreement, as well as with respect to any amendment, modification or waiver of (1) Section 6.13(g) of the DIP Credit Agreement, (2) Section 6.21 of the DIP Credit Agreement, or (3) the Chapter 11 Case milestones set forth in Sections 6.22 and 8.01(r)(vi) and (xv) of the DIP Credit Agreement. In addition, the Debtors and the DIP Credit Parties shall not amend the DIP Credit Agreement or the DIP Loan Documents to add any financial covenants (including budget covenants) or Chapter 11 Case milestones without the consent of the Prepetition Term Loan Agent. Pursuant to the Final DIP Order, the Fourth Amendment will become effective on June 9, 2016 without further notice or a hearing.”

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The post Pacific Sunwear of California Financing Amended appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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