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ITT Educational trustee wins final OK of $6 million in financing
By Caroline Salls
Pittsburgh, Nov. 18 – ITT Educational Services, Inc. Chapter 7 trustee Deborah J. Caruso received court approval to access $6 million in post-bankruptcy financing from Cerberus Business Finance, LLC, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Indiana.
The financing will be used to fund the wind-down of the ITT estates, pay lender and agent fees and expenses, pay fees and expenses of the trustee’s professional and pay other bankruptcy-related charges.
The loan will mature on the earliest of July 17, 2017, the date of the sale, transfer or other disposition of all or substantially all of the company’s assets, payment in full of the pre-bankruptcy secured obligations, reduction of the post-bankruptcy loan obligations to zero with the loan parties having at least $5 million in cash that is not subject to a lien and termination of the commitments and acceleration of the loans.
Interest will accrue at a rate of 9%.
ITT Educational Services provided postsecondary degree programs and is based in Carmel, Ind. The company filed for bankruptcy on Sept. 16 under Chapter 7 case number 16-07207.
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