United Retail granted interim DIP loan access; final hearing Feb. 21

By Caroline Salls

Pittsburgh, Feb. 3 - United Retail Group, Inc. has been granted interim access to $25 million of its proposed $40 million debtor-in-possession facility from existing revolving credit lender Wells Fargo Bank, NA, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Feb. 21.

The financing will provide working capital for United Retail's Avenue business to continue to operate as usual.

The DIP agreement will terminate on the earliest of 210 days from the bankruptcy filing date, the effective date of a plan of reorganization or liquidation and the completion of a sale of substantially all company assets.

The interest rate will be the base rate plus 300 basis points.

United Retail, a Rochelle Park, N.J., specialty retailer of large-size women's fashion apparel, footwear and accessories, filed for bankruptcy on Feb. 1. The Chapter 11 case number is 12-10405.

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