Rubio's Coastal Grill Can Tap $4.5M Of Ch. 11 Financing
Law360 (October 27, 2020, 9:59 PM EDT) -- The bankrupt parent of eatery chain Rubio's Coastal Grill received permission Tuesday from a Delaware judge to borrow $4.5 million of its debtor-in-possession financing despite her concerns that unsecured creditors had not yet had a chance to weigh in on the loan.
During a virtual first-day hearing, U.S. Bankruptcy Judge Mary F. Walrath clashed with attorneys for Rubio's Restaurants Inc. over a request in the DIP motion to extend liens to the post-petition lenders on previously unencumbered assets, saying they could be the only source of recovery for general unsecured creditors.
Rubio's secured the $8 million total loan package from prepetition...
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