Pappas Telecasting obtains commitment for $5 million DIP facility

By Caroline Salls

Pittsburgh, July 2 - Pappas Telecasting Inc. requested court approval of a $5 million debtor-in-possession facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Pappas said the financing will be used to fund its operations while the company sells its assets and formulates a plan of reorganization.

Fortress Credit Corp. is the administrative agent.

The DIP facility will mature on the earlier of 180 days after closing and the effective date of a plan of reorganization or liquidation.

Interest will be one-month Libor plus 500 basis points.

The company is seeking interim access to $1.5 million of the facility.

Pappas will pay a 3% facility fee and a $10,000 per month administrative fee.

The interim DIP facility hearing is scheduled for Thursday.

Pappas Telecasting, a private broadcasting company based in Fresno, Calif., filed for bankruptcy on May 10. Its Chapter 11 case number is 08-10916.

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