Daily News: February 29, 2012

Dippin’ Dots Asks for Second Bankruptcy Loan

Ice cream manufacturer Dippin’ Dots is asking U.S. Bankruptcy Judge Thomas H. Fulton in the U.S. Bankruptcy Court in Kentucky for permission to seek a second $2 million debtor-in-possession loan from Fischer Ventures LLC, a Wall Street Journal article said.

The loan would be used to fund the company’s manufacturing operations in Kentucky while it looks for investors.

Fischer Ventures is led by Mark Fischer, who is president of Chaparral Energy, an oil and gas exploration company. The article said that the loan request “hints” that Fischer may try to take over the company.

Separately, Regions Bank, Dippin’ Dots’ lender of its first DIP loan, said it will not extend any further money after the company used all of its $200,000 bankruptcy loan, the article said.

Regions is asking the court to oust founder and president Curt Jones. Regions said that Jones is “overlooking” potential purchase offers from outside buyers. Regions Bank is owed almost $12 million and is Dippin’ Dots largest creditor.

To read the WSJ article in its entirety, click here.

Previously on abfjournal.com:

WSJ: Dippin’ Dots Files for Bankruptcy, Monday, November 07, 2011