Pliant obtains final approval of $68.8 million DIP

By Caroline Salls

Pittsburgh, Feb. 2 - Pliant Corp. obtained final approval of its $68.8 million in debtor-in-possession financing from GE Commercial Finance and Morgan Stanley Senior Funding, Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The DIP includes a $25 million letter-of-credit subfacility and $10 million swing-line subfacility.

According to court documents, although the full DIP commitment amount is $200 million, the availability has been reduced by the amount outstanding under Pliant's pre-bankruptcy credit facility, leaving $68.8 million of final availability.

Maturity is the earlier of 24 months after the closing date or after other customary events that would trigger a maturity date under the DIP agreement.

Interest is Libor plus 275 basis points.

The commitment fee is 50 bps and the letter-of-credit fee is 275 bps plus a fronting fee at a rate to be agreed.

Pliant, a Schaumburg, Ill., producer of film and flexible packaging products, filed for bankruptcy on Jan. 3. Its Chapter 11 case number is 06-10001.

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