WL Homes granted access to $7 million of DIP financing through April 8

By Caroline Salls

Pittsburgh, March 23 - WL Homes LLC's interim access to $7 million of its $30.88 million in debtor-in-possession financing was extended to April 8 from March 23, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing was also pushed back to April 8 from March 23.

As previously reported, WL Homes said the DIP financing will allow it to pay employees, suppliers and service providers, continue development of real estate projects, preserve the going-concern value of its business and conduct an orderly sale of some assets.

Interest will be Prime rate plus 100 basis points.

The facility will mature in 12 months, or earlier if the company fails to confirm a plan of reorganization by Sept. 30, 2009.

WL Homes, an Irvine, Calif.-based homebuilder, filed for bankruptcy on Feb. 19. Its Chapter 11 case number is 09-10571.

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