Performance Transportation granted interim access to $6 million of DIP facility

By Caroline Salls

Pittsburgh, Dec. 19 - Performance Transportation Services, Inc. obtained interim access to $6 million of its up to $15 million in debtor-in-possession financing from Black Diamond Commercial Finance, LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the Western District of New York.

The final DIP hearing is scheduled for Jan. 18.

As previously reported, the DIP will be used to maintain uninterrupted service and delivery of products during the completion of the sale transaction and to ensure payment to vendors for post-bankruptcy purchases.

Interest will be Libor plus 450 basis points.

The DIP facility will mature on the earliest of six months from the bankruptcy filing date, 45 days after the interim order if a final order has not been entered, upon the effective date of a plan of reorganization and upon acceleration on the loan.

The company will pay a 100 bps commitment fee on the undrawn portion of the DIP facility.

Performance Transportation Services, a Detroit-based transporter of new automobiles, sport utility vehicles and light trucks, filed for bankruptcy on Nov. 19. Its Chapter 11 case number is 07-04746.

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