Daily News: March 9, 2012

Dippin’ Dots Receives $1.25MM After CEO Resigns, OK for CRO

U.S. Bankruptcy Judge Thomas H. Fulton in the U.S. Bankruptcy Court in Kentucky has approved a new CRO for Dippin’ Dots and its request for a second debtor-in-possession loan from Regions Bank, after issues were resolved with the lender.

According to The Deal Pipeline, the main issue was that Regions said it would not loan any more money to the company unless CEO Curt Jones resigned from his position. It also requested that the court allow the appointment of a U.S. Trustee to sell the company. The approval of a CRO settles the trustee matter. Greg Charleston of Conway MacKenzie was appointed as the company’s new CRO.

Jones did resign from the company amid reports from Regions that he deterred the potential sale of the company unless he was allowed to maintain control of the ice cream maker after the close of an acquisition.

With Jones’ resignation, Dippin’ Dots is allowed to borrow $1.25 million in DIP financing from Regions. The second loan has the same terms as the first, the Deal Pipeline article said, which was for $201,842.

To read the Deal Pipeline article in its entirety, click here.

Previously on abfjournal.com:

Dippin’ Dots Asks for Second Bankruptcy Loan, Wednesday, February 29, 2012