CIT Business Credit Provides DIP Loan in Broadview Bankruptcy
Communications and information company Broadview Networks Holdings received final bankruptcy-court approval to obtain up to $25 million in DIP financing from CIT Group Business Credit. The order was given by the Honorable Shelley C. Chapman, U.S. Bankruptcy Judge.
According to bankruptcy court documents, Broadview received interim approval that gave it access to $16 million in August. The company said it has enough funding to continue operating for now but is requesting the bankruptcy financing in case its case lasts longer than expected.
Broadview Networks filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York on August 22, 2012. At the time, the company filed for Chapter 11 in order to effectuate its pre-packaged financial restructuring plan. As of the petition date, Broadview owed its existing ABL lenders $13.9 million under an ABL facility.
Broadview Networks is a network-based business communications provider serving customers nationwide with local and long-distance voice and data communications, premises-based and patented hosted VoIP systems, data services and a full suite of managed and professional services.
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