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Wells Fargo Agents ALCO Stores’ DIP Financing

October 14, 2014, 08:04 AM
Filed Under: Bankruptcy

ALCO Stores, Inc. announced that the company and its subsidiary, ALCO Holdings, Limited Liability Company, filed on October 12, 2014 voluntary petitions for relief in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division seeking relief under the provisions of Chapter 11 of Title 11 of the United States Code. The debtors expect to continue to operate their businesses as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code during the pendency of the cases under Chapter 11 of the Bankruptcy Code.

On the Petition Date, the company entered into a Debtor-in-Possession Credit Agreement (the "DIP Credit Agreement"), by and among ALCO Stores, Inc., as Lead Borrower, Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent (in such capacity, the "Agent"), Swing Line Lender, Term Loan Agent, Sole Lead Arranger and Sole Bookrunner for the lender parties thereto, and the lenders party thereto (the "Lenders"), pursuant to which the Agent and the Lenders agreed to provide (a) a senior secured revolving credit facility in an aggregate principal amount not to exceed $110,000,000 and (b) a senior secured term loan in the original principal amount of $12,675,000, in order to, among other things, repay certain pre-petition obligations, fund the Debtors' chapter 11 cases, and provide working capital for the Debtors during the pendency of the Chapter 11 cases.

In connection with the Chapter 11 Petitions, the company filed a motion seeking the Bankruptcy Court's approval of the DIP Credit Agreement.

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