Modern Continental granted final approval for $5 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., Aug. 28 - Modern Continental Construction Co., Inc. obtained final court approval of a $5 million debtor-in-possession financing commitment, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

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

The proceeds of the DIP facility will be used for working capital and general corporate purposes, to pay the costs and expenses of the administration of Modern Continental's Chapter 11 bankruptcy case and to fund its business operations.

Interest will be Prime rate plus 200 basis points.

The DIP facility will mature on the earliest of Oct. 10, on the effective date of a plan of reorganization and upon dismissal or conversion of the company's Chapter 11 case or appointment of a trustee or examiner.

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

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