Linden Ponds, Hingham Campus win DIP loan, plan support agreement OK

By Caroline Salls

Pittsburgh, July 28 - Linden Ponds, Inc. and Hingham Campus, LLC obtained final court approval of its $6 million of debtor-in-possession financing from Redwood Capital Investments, LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The DIP loan will mature on the earliest of Nov. 8, the effective date of the company's plan of reorganization and the occurrence of an event of default.

Interest will be Libor plus 250 basis points.

The companies must pay a $250,000 commitment fee.

In addition, the companies received court approval to assume the plan or reorganization support agreement with its consenting series 2007 bondholders.

Under the proposed Linden Ponds and Hingham plan of reorganization, all of Hingham's assets will be transferred to reorganized Linden Ponds, the agreements between Hingham and Linden Ponds will be terminated and Hingham will cease operations.

Linden Ponds is based in Hingham, Mass., and Hingham Campus is based in Baltimore. The companies filed for bankruptcy on June 14. The Chapter 11 case number is 11-33912.

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