Interfaith Medical Center requests approval of $15 million DIP loan

By Caroline Salls

Pittsburgh, Aug. 19 - Interfaith Medical Center, Inc. requested court approval to obtain a $15 million delayed-draw term loan debtor-in-possession facility from the Dormitory Authority of the State of New York, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

The medical center said it will need access to the cash collateral and the proposed DIP loan to help fund the implementation of its closure plan and payment of administrative expenses throughout the remainder of its Chapter 11 case.

Interest will be 1%.

The loan will mature on the earliest of Dec. 31; the earlier of expiration of an eighth interim cash collateral order or 35 days after entry of the eighth cash collateral order if the DIP loan order has not been entered by that date; if a plan of reorganization has been confirmed, the earlier of the plan effective date or the 30th day after entry of the confirmation order; the closing of a sale of substantially all of Interfaith's equity or assets; payment in full of all DIP obligations; and acceleration of the loan.

A hearing is scheduled for Sept. 11.

Interfaith, a Brooklyn, N.Y., multi-site health-care system operator, filed for bankruptcy on Dec. 2, 2012. Its Chapter 11 case number is 12-48226.

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