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Orleans Homebuilders' executive VP/chief financial officer resigns after DIP facility approved
By Jennifer Chiou
New York, April 19 - Orleans Homebuilders, Inc. announced that Garry P. Herdler has resigned as executive vice president and chief financial officer following the approval of the company's debtor-in-possession facility at a hearing on Thursday.
His last day will be April 23.
"We also appreciate his commitment to stay with the company to complete the definitive sale agreement announced last week," Jeffrey P. Orleans, chairman, chief executive officer and president of Orleans, said in a news release.
"We have been through significant challenges together during this lengthy and historic housing downturn."
As previously reported, in March the U.S. Bankruptcy Court for the District of Delaware granted the company interim access to up to $26 million of its DIP financing.
The interim DIP loan includes up to $11 million in cash funding and up to $15 million of letters of credit and will be used to finance Orleans' business expenses.
Prospect News previously reported that the DIP facility consists of a $40 million revolving credit facility and an $80 million term loan. The term loan will be rolled up from the company's pre-bankruptcy debt.
Interest on the revolver will be Libor plus 850 basis points with a 2% Libor floor, and interest on the term loan will be Libor plus 350 bps with a 2% Libor floor.
Orleans Homebuilders, a Bensalem, Pa.-based developer, builder and marketer of single-family homes, townhouses and condominiums, filed for bankruptcy on March 1 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-10684.
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