Tarragon granted interim access to $4.15 million replacement DIP loan

By Caroline Salls

Pittsburgh, Nov. 25 - Tarragon Corp. was granted interim access to a $4.15 million replacement debtor-in-possession facility from Westminster Funding, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The final hearing is scheduled for Dec. 10.

Tarragon said its original DIP loan from ARKOMD, LLC matured and was repaid on Nov. 9.

The replacement loan will mature on the earliest of Jan. 22, the filing of a plan of reorganization that has not been agreed to by Westminster, the earlier of the effective date of a Westminster-approved plan and 30 days after confirmation of that plan and the closing of a sale of substantially all company assets that does not have Westminster's consent.

Interest will be 12%.

Tarragon said it needs the replacement financing to fund its operations beyond the week ended Nov. 27.

Tarragon, a New York homebuilder, filed for bankruptcy on Jan. 12, 2009. Its Chapter 11 case number is 09-10555.

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