Z Gallerie gets interim access to $400,000 of DIP financing package

By Sarah Lizee

Olympia, Wash., Oct. 19 – DirectBuy Home Improvement, Inc., which does business as Z Gallerie, received interim approval to access $400,000 of new money under a proposed debtor-in-possession financing package, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, Z Gallerie is seeking final approval of a $2.2 million DIP super-priority senior secured term loan with ZG Lending SPV, LLC as lender.

The facility consists of $1.1 million in new money and a $1.1 million rollup of prepetition loans.

The facility carries no interest or fees and is set to mature on Jan. 31.

The remaining $700,000 will be available upon entry of the final order. The rollup will be effective as and when the two tranches of financing are funded.

The company also received interim approval to continue using prepetition collateral.

A final hearing is scheduled for Nov. 1.

Z Gallerie is a Gardena, Calif.-based furniture retailer. The company filed bankruptcy on Oct. 16 under Chapter 11 case number 23-19159.

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