Agriprocessors' trustee gets interim access to $10 million of DIP loan; final hearing Feb. 18

By Caroline Salls

Pittsburgh, Feb. 5 - Agriprocessors, Inc. Chapter 11 trustee Joseph E. Sarachek was granted interim access to $10 million of $25 million in debtor-in-possession financing from First Bank Business Capital, Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Iowa.

The final hearing is scheduled for Feb. 18.

According to the motion, the trustee has no unencumbered funds to administer Agriprocessors' estate.

As a result, Sarachek said the DIP financing is needed to move forward with a going-concern sale of the company's assets.

Interest will be First Bank's Prime rate plus 325 basis points.

The DIP facility will mature on the earlier of April 6 and the completion of the asset sale.

Agriprocessors, a Postville, Iowa-based kosher meat and poultry packer and food processor, filed for bankruptcy on Nov. 4 in the U.S. Bankruptcy Court for the Eastern District of New York. Its case was later transferred to Northern Iowa. Its Chapter 11 case number is 08-02751.

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