Auto Plus receives final approval of $75 million of DIP financing

By Sarah Lizee

Olympia, Wash., May 3 – IEH Auto Parts Holding LLC, doing business as Auto Plus, received final approval of a $75 million new money term loan debtor-in-possession facility with prepetition lender American Entertainment Properties Corp., according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Following the final order, all the company’s $187.5 million of prepetition loans were rolled up into the DIP facility.

Interest on the new money is 8%, payable in kind. There is a 1.5% payable-in-kind closing fee, but no exit fee or ticking fee.

Interest on the rolled-up loans will accrue at 3.5%, also payable in kind.

Default interest on new money or rolled-up loans is an additional 2%.

The DIP facility is set to mature in six months, subject to earlier termination if certain events occur, such as the effective date of a plan.

The company also received final approval to access cash collateral.

The Kennesaw, Ga.-based aftermarket auto parts retail chain filed bankruptcy on Jan. 31 under Chapter 11 case number 23-90054.

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