Real Mex Restaurants gets OK for interim DIP, use of cash collateral

By Jim Witters

Wilmington, Del., Oct. 6 - Real Mex Restaurants, Inc. received interim court approval for $49 million of debtor-in-possession financing from General Electric Capital Corp. and use of cash collateral, according to documents filed Thursday in the U.S. Bankruptcy Court for the District of Delaware.

A final hearing on the DIP financing and use of cash collateral is scheduled for noon ET on Nov. 3.

The DIP loan includes up to $20 million in a letter of credit and up to $29 million as a revolving credit facility. The interim order allows the debtors to borrow under the revolver and use cash collateral not to exceed $5 million through Nov. 4.

The DIP loan matures on the earliest of March 31, 2012, the effective date of a plan of reorganization and the completion of the sale of all or substantially all of the company's assets and equity interests.

Interest on the revolver will be Base rate plus 600 basis points. All undrawn letters of credit under the letter-of-credit facility will be subject to monthly fees at a rate of 4.5%.

Real Mex is a restaurant company based in Cypress, Calif. The Chapter 11 case number is 11-13122.

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