Simplexity Gets OK For DIP Loan To Fund Wal-Mart Sale

Law360, Wilmington (April 11, 2014, 8:21 PM EDT) -- A Delaware bankruptcy judge on Friday approved debtor-in-possession financing that private-equity owned mobile phone activator Simplexity LLC says is crucial to fund its planned $10 million stalking horse sale to Wal-Mart Stores Inc., despite objections from unsecured creditors that say the facility solely protects lender Fifth Third Bank.

U.S. Bankruptcy Judge Kevin Gross said that while the financing, which provides for up to $1.1 million of new money, was “not perfect,” he'd approve it based on Simplexity's business judgment, noting that the final version of the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.