Kentucky judge on Tuesday approved a motion a maker of flash-frozen ice cream; The group filed a motion for an order approving an agreed-upon stipulation that would resolve Regions’ motion for a Chapter 11 trustee by appointing a chief restructuring officer.
Kentucky judge on Tuesday, March 6, approved a motion resolving issues surrounding bankrupt Dippin’ Dots Inc., a maker of flash-frozen ice cream; its creator and president, Curt Jones; and secured creditor Regions Bank involving a Chapter 11 trustee and postpetition financing.
The group filed a motion for an order approving an agreed-upon stipulation that would resolve Regions’ motion for a Chapter 11 trustee by appointing a chief restructuring officer. Dippin’ also filed a motion seeking a second debtor-in-possession loan from Regions. Judge Thomas H. Fulton of the U.S. Bankruptcy Court for the Western District of Kentucky in Paducah signed the order approving both.
Through the motion, Dippin’ withdrew its borrowing motion and Regions withdrew its trustee motion, with the option of filing a second trustee motion if the CRO is incapacitated or displaced, court documents show.
Under the terms of the agreement, Dippin’ will have the continued right to use its cash collateral as long as it isn’t in default.
Dippin’ Dots can borrow an additional $1.25 million in new money from Regions for working capital, according to debtor counsel Todd Farmer of Farmer & Wright PLLC. Continue reading…
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