Haggen wins OK to continue closing sales, access $215 million loan

By Caroline Salls

Pittsburgh, Oct. 15 – Haggen Holdings LLC received final court approval to continue to conduct store-closing sales, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Hilco Merchant Resources, LLC is the agent for the store-closing sales.

As previously reported, Haggen said it intends to reorganize around, or sell as a going concern, its core stores for the benefit of its creditors.

Unlike the core stores, the company said many of the recently acquired stores are unprofitable and represent a cash drain on the debtors’ business.

In addition, Haggen received final court approval to use $215 million of debtor-in-possession financing from its pre-bankruptcy lenders.

PNC Bank, NA is the DIP loan agent.

Interest will accrue at the alternate base rate plus 300 basis points.

The facility will mature on the earliest of Feb. 5, the effective date of a reorganization plan, the closing of the core stores sale and conversion or dismissal of the Chapter 11 case.

Haggen, a Bellingham, Wash.-based supermarket company, filed bankruptcy on Sept. 8. The Chapter 11 case number is 15-11874.

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