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 Delaware Bk Ct Disapproves LandSource DIP Financing For Now View next topic
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Aristotle
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Joined: 05 Dec 2007
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Location: On a sand dune, sipping a cold soda

Delaware Bk Ct Disapproves LandSource DIP Financing For Now
PostPosted: Tue Jul 15, 2008 10:00 pm Reply with quoteBack to top

On 7/14/08 the U.S. Bankruptcy Court for Delaware (Judge Carey) tentatively denied and disapproved LandSource's motion for approval of $1.150 Billion in additional Debtor in Possession Financing which was to have been provided by a group of lenders led by Barclays Bank.

In June 2008, the court had approved $35 Million in interim DIP financing by the Barclays Bank group.

A Barclays Bank lending group, with slightly different composition, currently holds a $1 Billion first lien on some but not all of LandSource's assets.

The LandSource Unsecured Creditors Committee, a group of large general contractor creditors, and the second lien secured creditors group led by Bank of New York had objected to the terms of the $1.150 Billion DIP financing. The Unsecured Creditors Committee had called for the liquidation of LandSource.

A further status conference on the case was held on 7/15/08 but Judge Carey did not approve any revised terms for the proposed additional financing, according to Judge Carey's Judicial Assistant.

Barclays Bank, LandSource and the creditors are said to be planning to discuss further changes to the DIP financing deal terms, in order to try to meet the creditors' and Judge Carey's concerns.

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Aristotle

As Yogi Berra said "It's like deja vu all over again."
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Aristotle
Nitroglycerin


Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

Financial Press Reports on DIP Financing Disapproval
PostPosted: Wed Jul 16, 2008 6:43 am Reply with quoteBack to top

bloomberg.com and wsj.com report on why the Debtor in Possession financing was disapproved:

http://www.bloomberg.com/apps/......kveMU_xJY

http://online.wsj.com/article/.....lenews_wsj

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Aristotle

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