Solavei asks court to allow use of cash collateral through December

By Kali Hays

New York, Sept. 4 – Solavei, LLC is seeking approval on continued use of the cash collateral of its pre-bankruptcy lender Opus Bank through Dec. 31, according to a Sept. 4 motion with the U.S. Bankruptcy Court for the Western District of Washington.

A previous court order approved the use of cash collateral through Sept. 30.

Solavei asked for the continuation of the cash collateral to “minimize disruption and to avoid termination of its operations” as it will be unable to meet working capital needs without it, according to the motion.

As part of the cash collateral, the company will continue a fund securing the payment of professionals employed by the Solavei and its unsecured creditors committee that was implemented with the initial cash collateral budget.

The fund will continue to be maintained by its bankruptcy counsel, Bush Strout & Kornfeld LLP.

Opus Bank agreed to a monthly payment to the professional fund up to $50,000.

Solavei agreed to adhere to a weekly budget with fixed amounts of payable expenses that are not to exceed 5% of the fixed amount per week.

A hearing is scheduled for Sept. 26.

Solavei will also provide the court, Opus Bank and T-Mobile, which provides it mobile service on a wholesale basis, a weekly report of its business operations as part of the cash collateral agreement.

Solavei, a social commerce telecommunications company with headquarters in Bellevue, Wash., filed for bankruptcy on June 11. The Chapter 11 case number is 14-14505.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.