Modern Continental gets nod to increase DIP financing to $6.5 million

By Caroline Salls

Pittsburgh, Oct. 8 - Modern Continental Construction Co. obtained court approval of amendments to its debtor-in-possession financing that increase the amount and extend the term of the facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The company said its DIP lender has agreed to increase the facility to $6.5 million from $5.0 million to fund working capital and general corporate purposes through Dec. 5.

The facility was previously scheduled to expire on Oct. 3.

The company said the terms of the extended agreement will remain the same as those under the original agreement.

As previously reported, St. Paul Fire and Marine Insurance Co. is the lender agent.

Interest is Prime rate plus 200 basis points.

Modern Continental, a Dedham, Mass., contractor, filed for bankruptcy on June 23. Its Chapter 11 case number is 08-14558.

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