Radnor obtains interim court approval to use $26 million of $103 million DIP facility

By Caroline Salls

Pittsburgh, Aug. 23 - Radnor Holdings Corp. obtained interim court approval to use $26 million of its $103 million debtor-in-possession financing from Silver Point Finance LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The full DIP facility will include a $52 million term loan and a $51 million revolving facility, including a $5 million letter-of-credit subfacility.

The term will be the earliest of 90 days, 30 days after entry of an interim order if a final order has not been entered, upon consummation of a plan of reorganization, upon closing of a sale of substantially all of the company's assets, upon event of default or upon acceleration of the DIP facility.

Interest will be 11%.

The company will pay a 2.25% letter-of-credit fee.

About $64 million of the DIP facility will be used to repay the company's outstanding balance under its pre-bankruptcy revolver.

The DIP facility will be used to pay the company's operating and other ordinary course obligations, including payment of employee wages and benefits and payments to suppliers for goods and services received after the Chapter 11 filing.

The final DIP hearing is scheduled for Sept. 18.

Radnor, a Radnor, Pa.-based foam cup, container and expandable polystyrene bead manufacturer, filed for bankruptcy on Aug. 21. Its Chapter 11 case number is 06-10894.

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