Loehmann's granted interim access to $6 million of DIP financing

By Caroline Salls

Pittsburgh, Nov. 17 - Loehmann's Capital Corp. received interim court approval to use $6 million of its proposed $45 million in debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Dec. 6

Interest will be Libor plus 850 basis points.

The DIP loan will terminate on the earliest of one year from closing, upon acceleration of the maturity date, 30 days after the bankruptcy filing date if a final order has not been entered and the effective date of the company's plan of reorganization.

Loehmann's must pay a $500,000 commitment and arrangement fee, Libor plus 850 bps letter-of-credit fees and a $65,000 monitoring fee.

Loehmann's, a Melville, N.Y.-based retailer of women's clothing, filed for bankruptcy on Nov. 15. The Chapter 11 case number is 10-16077.

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