Bayonne Medical Center granted second interim approval to borrow $12 million more on DIP

By Caroline Salls

Pittsburgh, May 30 - Bayonne Medical Center obtained a second interim approval of its debtor-in-possession financing that will allow it to borrow up to $12 million of the $30 million DIP through July 31, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The company previously obtained court approval to use up to $4 million of the DIP on an interim basis.

The final DIP hearing is scheduled for July 31.

Proceeds of the DIP will be used to satisfy working capital and operating requirements.

Maturity will be the earliest of 30 days after the interim approval if a final order has not been entered, two years from closing, upon the sale of substantially all company assets and upon the effective date of a plan of reorganization or liquidation.

Interest will be Libor plus 400 basis points.

Bayonne Medical Center will pay an arrangement draw fee of 0.75% of the total commitment, a commitment fee of 0.50% of the daily average unused portion of the DIP and a $10,000 administration fee.

The Bayonne, N.J., medical center filed for bankruptcy on April 16. Its Chapter 11 case number is 07-15195.

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