Brooke trustee requests OK of $1 million post-bankruptcy credit line

By Caroline Salls

Pittsburgh, Oct. 30 - Brooke Corp.'s Chapter 11 trustee requested court approval of a $1 million post-bankruptcy line of credit from New Brooke Ltd. LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Kansas.

According to the motion, New Brooke is not related to Brooke, nor is it a traditional debtor-in-possession lender.

Instead, the trustee said New Brooke was formed by Lyle Davidson and Terry Nelson for the purpose of soliciting an offer to purchase a portion of the company's business assets.

Since Brooke does not have sufficient resources to maintain its business as a going concern, New Brooke agreed to provide the financing in order to maintain and preserve any enterprise value of Brooke's assets.

Interest on the financing will be 10%.

The line of credit will mature one year from the date of the initial advance.

Based in Overland Park, Kan., Brooke is a holding company for insurance and banking services distribution companies. The company filed for bankruptcy on Oct. 28, and its Chapter 11 case number is 08-22786.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.