Curative Health Services granted interim court approval of $45 million DIP

By Caroline Salls

Pittsburgh, April 5 - Curative Health Services, Inc. obtained interim court approval for its up to $45 million revolving credit debtor-in-possession facility from General Electric Capital Corp., according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Proceeds of the DIP will be used to pay off the $30.2 million outstanding under the company's existing credit facility.

The DIP includes a $5 million letter-of-credit subfacility and may also include a $5 million swingline loan facility and a $2.5 million overadvance subfacility.

Interest can be paid in either one-, two- or three-month Libor plus 350 basis points if no default has occurred or a floating rate of 225 bps plus the greater of the Prime rate and the Federal Funds rate plus 50 bps, at the company's option.

The company paid a $450,000 commitment fee and will pay a $450,000 closing fee.

The term will be the earliest of one year, upon the effective date of a plan of reorganization or 45 days after the petition date if a final DIP order has not been entered.

The final hearing is scheduled for April 17.

Curative Health Services, a Hauppauge, N.Y.-based pharmacy and health care services provider, filed for bankruptcy on March 27. Its Chapter 11 case number is 06-10552.

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