Pharmed granted final approval for $18.25 million DIP financing

By Jennifer Lanning Drey

Portland, Ore., Dec. 18 - Pharmed Group Holdings, Inc. was granted final court approval to obtain $18.25 million in debtor-in-possession financing from Comerica Bank, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the DIP order, Pharmed must pay Comerica $12.67 million upon the sale of substantially all of the assets of Pharmed's PAL Laboratories subsidiary. The sale is scheduled to close Jan. 4.

The DIP facility will mature on the earlier of Feb. 22 or an event of default.

Interest will be Prime rate plus 250 basis points. If the company defaults on the DIP facility, interest will increase by 3%.

Pharmed, a Miami-based full-line distributor of medical, surgical and rehabilitative supplies, filed for bankruptcy on Oct. 26. Its Chapter 11 case number is 07-19187.

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