Hines Horticulture gets court OK of modified $62 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., Sept. 10 - Hines Horticulture, Inc. obtained final court approval of its $62 million debtor-in-possession financing Wednesday from the U.S. Bankruptcy Court for the District of Delaware, according to a source familiar with the case.

Bank of America NA is the DIP facility agent.

The approved DIP facility pushes back the deadline by which the company must enter into a sale agreement and gain court approval of the related bid procedures to Sept. 25 from Sept. 19.

The deadline by which the auction must be held remained Nov. 7, and the deadline for sale approval remained Nov. 21.

As previously reported, Hines' official committee of unsecured creditors objected to the DIP facility earlier this week, arguing it was too expensive for financing of its size and that its deadlines did not allow enough time to explore sale alternatives.

The DIP order included a budget setting forth all projected sales, cash receipts and disbursements on a weekly and cumulative basis for the 13-week period following Wednesday's hearing.

The facility will mature on the earliest of Dec. 15 and upon consummation of a sale of substantially all company assets.

Interest will be either Base rate plus 325 basis points or Libor plus 425 bps, at Hines' option.

The company will pay a $620,000 DIP closing fee and a $15,000-per-month servicing fee.

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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