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October 18, 2002 — (WEB HOST INDUSTRY REVIEW) — The U.S. Bankruptcy Court for the Southern District of New York has approved
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Interliant’s application for Debtor-in-Possession (DIP) financing with
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Access Capital, Inc., a New York City based lender. Access Capital is
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providing Interliant with a revolving credit facility with maximum
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availability of $5 million. The credit facility is secured by Interliant’s
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accounts receivable, with additional security in the company’s assets.
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“We are pleased that the court has given us its final approval of this
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financing,” said Francis J. Alfano, Interliant’s president and CEO. “This
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gives Interliant an added source of funds to help us through our Chapter 11
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reorganization and move forward with our ongoing operations.”
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On August 5, 2002, Interliant filed for reorganization
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under Chapter 11 of the U.S. Bankruptcy Code. The company is reorganizing to
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focus on its core businesses that provide recurring revenue and utilize its
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data center infrastructure: managed messaging, managed hosting, and managed
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security services, along with related professional services.
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Under a Final Order, signed by the bankruptcy court on October 9, 2002,
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Interliant now has a credit facility with $5 million maximum availability.
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An Interim Order was entered by the court on September 20, 2002 limiting
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Interliant’s availability under its credit facility to $1.5 million dollars
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through October 20, 2002. Interliant announced the closing of the agreement
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with Access Capital on September 26, 2002.
