Metromedia Steakhouses gets final approval for $2.8 million DIP loan

By Jennifer Lanning Drey

Portland, Ore., Dec. 19 - Metromedia Steakhouses Co., LP obtained final court approval to obtain $2.8 million of debtor-in-possession financing from affiliate and existing secured creditor Metromedia Co., according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The facility will mature on the earliest of the effective date of a plan of reorganization or 180 days from the bankruptcy filing date if a plan is not approved by that date; upon the sale of substantially all of the company's assets; upon conversion or dismissal of the bankruptcy case; and upon appointment of a trustee or examiner.

Interest will be 10%.

Metromedia Steakhouses will pay a fee of 2% of the commitment amount.

Metromedia is a steakhouse company based in Plano, Texas, that operates restaurants under the names Ponderosa Steakhouse and Bonanza Steakhouse. The company filed for bankruptcy on Oct. 22. Its Chapter 11 case number is 08-12490.

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