Cleveland Integrity gets final approval of $30 million DIP facility

By Sarah Lizee

Olympia, Wash., Feb. 13 – Cleveland Integrity Services, Inc. received final approval of a $30 million debtor-in-possession facility on Friday, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The DIP facility is with the company’s prepetition secured parties and Owl Rock Capital Corp. as agent.

The facility consists of $13 million in new money and a $17 million rollup of the prepetition debt.

Interest on the facility is 12% per annum. Default interest would be an additional 2%.

The facility has a 90-day maturity, unless certain events occur earlier, such as the closing of a sale or confirmation of a plan.

Proceeds from the facility will be used to honor employee wages and benefits and fund working capital and other general corporate operating needs, administer the Chapter 11 cases and then wind down the business.

The company also received final court approval to use cash collateral.

The Cleveland, Okla.-based company is a provider of inspection services to oil and gas pipelines. It filed bankruptcy on Jan. 29 under Chapter 11 case number 23-90052.

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