Ambassadors granted final approval to access $10 million DIP loan

By Lisa Kerner

Charlotte, N.C., April 26 - Ambassadors International, Inc. received final court approval to access its $10 debtor-in-possession financing from Whippoorwill Associates, Inc. on Tuesday, according to an attorney familiar with the case.

The company was granted interim access to $5 million of the loan earlier in the month.

As previously reported, the DIP facility amends and restates the company's prior working capital facility with Whippoorwill.

The DIP facility will mature on the earliest of 120 days from the petition date, 25 days from the bankruptcy filing if a final order has not been entered and termination in accordance with the credit agreement.

Interest on the DIP loan will be 12%.

Ambassadors will pay a $200,000 commitment fee.

The company's ability to obtain loans under the facility will be subject to its compliance with milestones related to the sale of substantially all of its assets.

Ambassadors filed for Chapter 11 bankruptcy on April 1 to carry out the sale of substantially all of its assets to Whippoorwill.

Based in Seattle, Ambassadors is a cruise company. The Chapter 11 case number is 11-11002.

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