GigaMonster Networks gets final approval of $5.8 million DIP loan

By Sarah Lizee

Olympia, Wash., Feb. 22 – GigaMonster Networks, LLC received final approval of a $5.8 million debtor-in-possession facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The agent and lender is M/C Partners VIII, LP, as previously reported.

The company will use the proceeds to continue operating in Chapter 11 pending a sale process.

The facility is a multi-draw term loan set to mature 60 days from the petition date, or earlier depending on certain events.

Interest is 18%, payable in kind pending the maturity date. Default interest would be an additional 2%.

There was a 6% origination fee, which was payable in kind and earned upon entry of the interim order.

The company also received final approval to use cash collateral. Adequate protection has been granted to prepetition secured parties.

The Marietta, Ga.-based internet provider filed bankruptcy on Jan. 16 under Chapter 11 case number 23-10051.

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