Hancock Fabrics DIP hearing continued to April 19

By Michelle Anderson

Rochester, N.H., April 13 - Hancock Fabrics, Inc.'s final debtor-in-possession hearing was continued to April 19, according to an order filed Friday in the U.S. Bankruptcy Court for the District of Delaware.

The interim approval has also been extended to April 19.

On March 22 the company obtained court approval to use up to $10 million of its $105 million debtor-in-possession facility from Wachovia Bank, NA on an interim basis, according to the filing.

DIP proceeds will be used for general operating and working capital purposes. Interest will be either Libor plus 175 basis points or Prime plus 25 bps, at the company's option.

The DIP will mature on the earlier of March 22, 2009 and upon confirmation of a plan of reorganization.

The company will pay up to $300,000 in servicing, unused line, audit and appraisal fees and up to $200,000 in consulting fees.

Hancock Fabrics is a Baldwyn, Miss.,-based specialty retailer of fabric and related home sewing and decorating accessories. It filed for bankruptcy on March 21. Its Chapter 11 case number is 07-10353.

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