Renaissance Custom Homes gets interim access to $1.3 million of loan

By Caroline Salls

Pittsburgh, Oct. 7 - Renaissance Custom Homes, LLC was granted interim access to $1.3 million of unsecured post-bankruptcy financing from shareholder Randal Sebastian, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Oregon.

The final hearing is scheduled for Nov. 3.

According to the loan agreement, Sebastian is committed to supporting the company's recapitalization, and he is in the process of liquidating substantially all of his real estate investments with the intention of lending the net proceeds to Renaissance.

The loan will mature on the earliest of Dec. 31, 2009, the effective date of a plan of reorganization, conversion of the company's Chapter 11 bankruptcy case or appointment of a trustee.

Interest will be 5%.

Facility proceeds will be used for general operating purposes.

Sebastian said he will accept common stock in the reorganized company in satisfaction of the debt if the company obtains confirmation of a plan of reorganization acceptable to the lender.

Renaissance, a Lake Oswego, Ore.-based residential real estate and home building company, filed for bankruptcy on Sept. 25. Its Chapter 11 case number is 08-35023.

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