Agriprocessors trustee gets final approval for $25 million DIP loan

By Jennifer Lanning Drey

Portland, Ore., Feb. 20 - Agriprocessors, Inc.'s Chapter 11 trustee was granted final court approval to obtain $25 million in debtor-in-possession financing from First Bank Business Capital, Inc., according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Iowa.

As previously reported, 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.

When requesting approval of the DIP loan, trustee Joseph E. Sarachek said the financing was needed to move forward with a going-concern sale of the company's assets.

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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