Lucky Brand Dungarees wins final approval of $15.6 million DIP loan

By Caroline Salls

Pittsburgh, July 30 – Lucky Brand Dungarees, LLC obtained final court approval to access $15.6 million in debtor-in-possession financing, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The financing is being provided by Lantern Capital Partners, ReStore Capital, LC and Clover Holding II, LLC. Lantern Capital will serve as the administrative and collateral agent.

Lucky said the DIP financing will provide sufficient liquidity to fund its business through the closing of its asset sale.

The facility will mature on the earliest of three months after the bankruptcy filing date if a toggle does not occur, Oct. 31 if the toggle occurs, the sale closing date and acceleration of the note upon occurrence of an event of default.

Interest will accrue at a rate of 17%.

Lucky is a Los Angeles-based fashion designer and premium denim manufacturer. The company filed bankruptcy on July 3 under Chapter 11 case number 20-11768.

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