Modern Continental DIP financing extended through Jan. 9

By Jennifer Lanning Drey

Portland, Ore., Dec. 4 - Modern Continental Construction Co. was granted court approval to continue to use its debtor-in-possession financing through Jan. 9, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The company's DIP facility was previously set to expire on Dec. 5.

As previously reported, for the period ending Dec. 5, the maximum authorized borrowing under the facility was $6.5 million, plus up to $1.3 million for expenses.

However, Modern Continental's DIP lenders agreed to increase the borrowing amount to $7.06 million from $6.50 million, plus an additional $1.13 million to cover expenses related to termination of the facility.

The company is allowed to use $2.45 million of DIP financing through Jan. 9, including the $1.13 million expense allocation.

Proceeds will be used to allow the company to continue to operate its business through Jan. 9.

Modern Continental, a Dedham, Mass., contractor, filed for bankruptcy on June 23, 2008. Its Chapter 11 case number is 08-14558.

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