Theater Chain's Ch. 11 Loan Needs Changes, Del. Judge Rules

Law360, Wilmington (September 17, 2019, 7:46 PM EDT) -- The proposed debtor-in-possession financing package in the Chapter 11 case of luxury theater operator iPic Entertainment needs to be reworked after a Delaware judge ruled Tuesday that previously unencumbered assets of the debtor can be subject to new liens on a limited basis.

During a hearing in Wilmington, U.S. Bankruptcy Judge Laurie Selber Silverstein said DIP lenders the Retirement Systems of Alabama would have to first look to already encumbered assets when recovering on its $16 million in post-petition lending, and then could look to the unencumbered assets once the original assets were depleted.

The caveat to the ruling was that...

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