IdleAire interim DIP facility approved; final hearing June 9

By Caroline Salls

Pittsburgh, May 15 - IdleAire Technologies Corp. obtained interim access to $8 million of its $25 million in debtor-in-possession financing, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for June 9.

The interim financing will also include the amount needed by the company to pay off its pre-bankruptcy lender debt.

Wells Fargo is the administrative agent and collateral agent.

Interest will be 15%, payable in kind at maturity.

The DIP facility will mature on the earliest of July 18, upon completion of the company's asset sale, upon the company's acceptance of an offer to buy substantially all of its assets to a buyer that does not meet the lender's criteria, on the effective date of a plan of reorganization and 30 days from the bankruptcy filing date if a final order has not been issued.

IdleAire will pay a $1.25 million commitment fee and another $1.25 million fee if the asset sale is not approved by the court within 60 days of the bankruptcy filing date.

Based in Knoxville, Tenn., IdleAire is a privately held research and development company that provides products and services for the long-haul trucking freight industry. The company filed for bankruptcy on May 12. Its Chapter 11 case number is 08-10960.

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