Hines Horticulture creditors committee calls DIP facility too expensive, objects to deadlines

By Caroline Salls

Pittsburgh, Sept. 8 - Hines Horticulture, Inc.'s official committee of unsecured creditors objected to the company's proposed $62 million debtor-in-possession facility, arguing that "the DIP facility is too expensive for financings of this size and term and should be reduced to market," according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, the main purpose of the DIP facility is to finance Hines' sale for the lenders' benefit.

"The funding that is provided under the DIP facility pales in comparison to the burdens imposed on the debtors and the substantial benefits that are provided to the lenders," the committee said in the objection.

In addition, the committee said the DIP facility imposes deadlines that do not give the committee enough time to explore sale alternatives that will maximize value for the company's general unsecured creditors.

The final hearing for approval of the DIP facility is scheduled for Wednesday.

Hines Horticulture, an Irvine, Calif.-based operator of commercial nurseries, filed for bankruptcy on Aug. 20. Its Chapter 11 case number is 08-11922.

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