CORE Entertainment seeks court approval of $30 million DIP facility

By Caroline Salls

Pittsburgh, May 17 – CORE Entertainment, Inc. requested court approval to obtain $30 million of debtor-in-possession financing from Elvis Blue Moon Holdings, LLC, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

CORE said the proposed financing is “critical to the continued operation and viability of the debtors’ businesses.”

While it currently has sufficient liquidity, given access to the use of cash and/or cash collateral, the company said it is seeking approval of the DIP financing to give vendors, suppliers, employees and independent contractors confidence that it will have enough cash if revenues turn out to be even and/or insufficient.

Interest will accrue at a rate of 5%, payable in kind at maturity.

The financing will mature on the earliest of the company’s plan effective date, the closing date of a sale of all or substantially all company assets and 12 months from the execution of the DIP credit agreement.

A hearing is scheduled for June 2.

CORE, a New York-based entertainment content company, filed bankruptcy on April 28. The Chapter 11 case number is 16-11090.

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