Candymaker's Ch. 11 Loan Stifled By Court's Issues With Fees

By Vince Sullivan (September 9, 2019, 10:48 PM EDT) -- A bankruptcy loan proposed in the Chapter 11 case of luxury candymaker Sugarfina Inc. met stiff resistance Monday from a Delaware judge who took issue with the terms of the $4 million financing package, saying it was being used to extract exorbitant fees from the debtor.

During a first-day hearing in Wilmington, U.S. Bankruptcy Judge Mary F. Walrath said the complex debtor-in-possession loan being provided by a combination of prepetition lender SFCC Loan Investors LLC and unaffiliated proposed stalking horse bidder Candy Cube Holdings LLC included onerous fees that could see the DIP lenders earning interest rates as high as 75%...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!