Modular Space interim DIP financing approved; plan hearing scheduled

By Caroline Salls

Pittsburgh, Dec. 22 – Modular Space Corp. obtained court approval to use $61 million in debtor-in-possession financing on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Jan. 19.

The interim order allows the Modular Space debtors to use up to $55 million of U.S. revolving loans and $6 million of Canadian revolving loans.

Under the proposed final DIP financing order, the company is requesting approval to use $768 million in financing, which will be comprised of a $568 million revolving line of credit for the U.S. borrowers and up to $200 million in revolving loans and letters of credit for Canadian borrowers.

The DIP financing package also includes a roll-up in the amount of unpaid principal balance and other obligations of the U.S. borrowers to its U.S. term lenders.

Bank of America, NA is the DIP financing agent.

The DIP financing will mature on Feb. 28.

Interest will accrue at a rate of either the Base rate plus 350 basis points or Libor plus 450 bps.

In addition, the court scheduled a combined hearing on confirmation of Modular Space’s plan of reorganization and approval of the related disclosure statement for Feb. 7.

Berwyn, Pa.-based Modular Space sells and services modular space structures and storage containers. The company filed bankruptcy on Dec. 21 under Chapter 11 case number 16-12825.

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