Loot Crate’s first day motions were approved on an interim basis by the U.S. Bankruptcy Court. The Court authorized interim approval of the company’s $10 million DIP financing.
According to the motions filed, Money Chest is serving as administrative agent for the DIP lenders.
The court also approved the use of the Company’s existing cash management systems and bank accounts, allowing the company to issue payments and honor any outstanding checks, and to make vendor payments necessary to procure the goods required to complete and deliver as promptly as possible past due shipments.
As anticipated, the company filed its bid procedures and requested authority to enter into a stalking horse agreement with Loot Crate Acquisition, an affiliate of its existing investor Money Chest.
“Today’s approval of our first-day motions is encouraging, and with the submission of the sale procedures, we are positioned to move through this process swiftly,” said Chris Davis, CEO of Loot Crate. “These actions, along with access to new financing, should reassure our employees, partners, vendors and valued Looter community that we will continue to work to fulfill orders and create the most exciting and exclusive subscription boxes for our customers.”
The final DIP hearing is scheduled for September 3, 2019.
