Penn Traffic Closes $270 Million DIP Financing
SYRACUSE, N.Y. - The Penn Traffic Company announced Monday that it closed a $270 million permanent debtor-in-possession (DIP) financing, which was approved on July 31 by the U.S. Bankruptcy Court for the Southern District of New York.
Fleet Capital Corporation and a syndicate of lenders that were lenders to the company prior to the filing of its chapter 11 petition are providing the $270 million senior secured DIP financing facility.
"The company is gratified by the strong support of our lenders as evidenced by the closing of the DIP financing which we view as an important vote of confidence in our company, our people and our potential," said Steven G. Panagos, Penn Traffic's interim CEO. "I am looking forward to continuing to work with all of our employees, vendors and other business partners to strengthen Penn Traffic."
Fleet Capital Corporation and a syndicate of lenders that were lenders to the company prior to the filing of its chapter 11 petition are providing the $270 million senior secured DIP financing facility.
"The company is gratified by the strong support of our lenders as evidenced by the closing of the DIP financing which we view as an important vote of confidence in our company, our people and our potential," said Steven G. Panagos, Penn Traffic's interim CEO. "I am looking forward to continuing to work with all of our employees, vendors and other business partners to strengthen Penn Traffic."
