Court Approves Hooters’ Bankruptcy Funding Plan

A US bankruptcy judge approved casual dining chain Hooters’ $40 million debtor-in-possession facility on an interim basis on Wednesday.

• Facility includes $35 million of new money, $5 million roll-up
• The DIP financing will “be placed at the top of the payment waterfall,” Chris Dickerson, a company counsel, said at a court hearing
  • The DIP will be treated as a so-called “manager advance,” which will be used to address any liquidity shortfalls the securitization entities have, he said
• NOTE: Bracebridge Capital to Provide Bankruptcy Loan to Hooters
• Hooters expects to emerge from bankruptcy in about three months, Dickerson added
• The ...