Rowe receives final approval of $50 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., Oct. 13 - The Rowe Cos. obtained final approval of its $50 million debtor-in-possession facility from General Electric Capital Corp., according to Jason H. Gold, an attorney for Rowe.

The approval came Friday from the U.S. Bankruptcy Court for the Eastern District of Virginia.

As previously reported, the DIP facility includes the payment or "roll up" of GECC's pre-bankruptcy secured loans to Rowe.

The DIP agreement also requires Rowe to conform to sell or liquidate its Storehouse chain.

The DIP facility will include $5 million for letters of credit.

The company said previously in a news release that it believes the DIP financing will offer assurance to its vendors and suppliers that they will be paid in a timely manner for post-bankruptcy services as its restructuring process is completed.

Rowe, a McLean, Va.-based furniture company, filed for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia on Sept. 18. Its Chapter 11 case number is 06-11142.

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