USA Commercial Mortgage denied interim approval of $15 million DIP facility

By Caroline Salls

Pittsburgh, July 6 - USA Commercial Mortgage Co. was denied interim court approval of a $15 million revolving credit debtor-in-possession facility from CapitalSource Finance, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Nevada.

According to the order, the company must file any amended motion for the DIP financing by July 14, with a hearing to be held on July 25.

According to the original motion, proceeds of the DIP facility were to be used to pursue necessary collection actions for non-performing construction loans, to fund administrative and operational expenses, to possibly fund shortfall loans to complete the construction projects and to originate new loans for the purpose of generating income for payment to creditors.

USA Commercial Mortgage, a privately held real estate lender based in Las Vegas, filed for bankruptcy on April 13. Its Chapter 11 case number is 06-10725.

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