GBG USA receives interim access to $12 million of DIP facility

By Sarah Lizee

Olympia, Wash., Aug. 2 – GBG USA Inc. received approval to access $12 million of a $16 million debtor-in-possession facility from ReStore Capital, LLC, according to an interim order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The facility is set to mature in six months and bears interest at Libor plus 800 basis points. Default interest would be an additional 2%.

The DIP facility has a 4% closing fee and a 4½% exit fee.

The DIP facility, coupled with the consensual use of cash collateral, should provide GBG USA with sufficient funding to implement its sale strategy in an orderly manner and to maximize value for all stakeholders, the company said.

A final hearing is scheduled for Aug. 31.

New York-based GBG USA is primarily engaged in operating the wholesale and direct-to-consumer footwear and apparel business in North America. The company filed bankruptcy on July 29 under Chapter 11 case number 21-11369.

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