Tarragon's $4.15 million replacement DIP loan granted final approval

By Lisa Kerner

Charlotte, N.C., Dec. 10 - Tarragon Corp.'s $4.15 million replacement debtor-in-possession facility from Westminster Funding received final approval from the U.S. Bankruptcy Court for the District of New Jersey, according to an attorney close to the case.

The court previously granted the company interim access to the DIP facility to fund operations beyond the week ended Nov. 27.

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

As previously reported, the replacement loan will mature on the earliest of Jan. 22, 2010, 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, a New York homebuilder, filed for bankruptcy on Jan. 12, 2009. Its Chapter 11 case number is 09-10555.

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