Value City granted interim access to $40 million DIP facility; final hearing Nov. 19

By Caroline Salls

Pittsburgh, Oct. 28 - Value City Holdings, Inc. was granted interim access to its $40 million of debtor-in-possession financing from National City and Wells Fargo Retail Finance, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Nov. 19.

Interest on the DIP loans will be Base rate plus 100 basis points.

Proceeds will be used to repay pre-bankruptcy debt and for general corporate purposes.

The facility will mature in 120 days.

Value City, a Columbus, Ohio, off-price retailer, filed for bankruptcy on Oct. 26. Its Chapter 11 case number is 08-14197.

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