Port Townsend $13 million DIP facility approved

By Caroline Salls

Pittsburgh, March 1 - Port Townsend Paper Corp. obtained final court approval of its $13 million debtor-in-possession financing from The CIT Group/Business Credit, Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Washington.

Interest on the DIP facility will be either Prime rate plus 125 basis points or Libor plus 225 bps, at the borrower's option. Interest on letters of credit will be 250 bps.

Maturity will be the earlier of the June 2008 termination date or upon the sale of the company.

Port Townsend will pay a $200,000 facility fee.

Port Townsend Paper, a paper maker based in Port Townsend, Wash., filed for bankruptcy on Jan. 29. Its Chapter 11 case number is 07-10340.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.