Fast casual restaurant Cosi filed a motion with the U.S. Bankruptcy Court to increase the amount of borrowing under its DIP loans. In September, AB Opportunity Fund and other lenders were approved for DIP financing with the goal of a 363 sale.
According to a February 28, 2017, filing with the Bankruptcy Court of Massachusetts (Eastern Division), the company has requested an increase in DIP financing to $7.5 million to allow the new owners to refurbish its current locations and reopen stores that had been closed.
Among other things, the company is working toward reopening a location in the Boston South Station train station and refreshing its American Airlines location and kiosks in the Boston Logan Airport. The company has requested the increase in order to ensure it has sufficient liquidity during this reopening and renovation process, as well as to deal with other contingencies including operating losses and other expenses that may be incurred prior to the effective date of the plan,
Earlier in the proceedings, Cosi had proposed to sell all of its assets to the debtors, who had offered a stalking horse bid. The debtors subsequently canceled the auction and named investment group LIMAB the winning bidder. LIMAB is proceeding with a reorganization plan rather than the asset sale.
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