According to a motion filed March 2, the company is seeking a revolving debtor-in-possession credit facility of up to $40 million and a D-I-P term loan of $80 million to maintain operations.
The official committee of Orleans' unsecured creditors filed an objection to that motion Thursday, contending that the $18.2 million tax refund the home builder expects to receive is sufficient, and that the D-I-P financing benefits the lenders, providing them with "substantial and excessive fees" of $3.8 million through June 25.
On Tuesday, Bankruptcy Court Judge Peter J. Walsh also will consider Orleans' motion for a permanent order allowing the builder to contract and close on home sales; honor deposits and all contractual obligations; sell homes free and clear of liens; and establish methods to resolve liens and other claims.
Walsh signed an interim order March 4 permitting these activities. Since then, the court has received 12 objections.
At a hearing Tuesday, Walsh approved motions on several technical issues, including interim compensation for professionals' expenses; maintenance of cash-management systems; payment of pre-petition employee compensation; continuation of home warranty and mortgage arrangements; and payments to homeowners and condo associations.
As of April 2, 122 separate secured and unsecured claims against Orleans and its subsidiaries had been filed, court records show.
Although subject to audit and review, claims total $9,087,234, with the secured amount $2.38 million. The total includes money owed to materials providers and subcontractors; more than $2 million owed to the Internal Revenue Service by Orleans' Realen Homes subsidiary, which builds in Illinois; and taxes owed to states, counties, and municipalities.
Contact real estate writer Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.
