Metromedia Steakhouses asks to lift DIP loan amount to $3.77 million, extend maturity

By Jennifer Lanning Drey

Portland, Ore., March 9 - Metromedia Steakhouses Co., LP asked the U.S. Bankruptcy Court for the District of Delaware for permission to increase the amount of funding available under its debtor-in-possession financing agreement and to extend the maturity of the facility, according to a Friday filing.

The company wants to increase the DIP facility amount to $3.77 million from $2.80 million and extend the maturity to Aug. 18.

Metromedia said it needs the additional funding to continue operating its businesses, to minimize disruption to its operations and to manage and preserve the assets of its estates.

As previously reported, the DIP lender is affiliate and existing secured creditor Metromedia Co.

The facility was previously scheduled to 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.

A hearing is scheduled for March 24.

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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