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%...
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