Oct, 2002 : Interliant Obtains Debtor-in-Possession Financing

📅 October 18, 2002 - The U.S. Bankruptcy Court for the Southern District of New York has approved Interliant's application for Debtor-in-Possession (DIP) financing with Access Capital, Inc., a New York City based lender. Access Capital is providing Interliant with a revolving credit facility with maximum availability of $5 million. The credit facility is secured by Interliant's accounts receivable, with additional security in the company's assets.

"We are pleased that the court has given us its final approval of this financing," said Francis J. Alfano, Interliant's president and CEO. "This gives Interliant an added source of funds to help us through our Chapter 11 reorganization and move forward with our ongoing operations."
On August 5, 2002, Interliant filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company is reorganizing to focus on its core businesses that provide recurring revenue and utilize its data center infrastructure: managed messaging, managed hosting, and managed security services, along with related professional services.
Under a Final Order, signed by the bankruptcy court on October 9, 2002, Interliant now has a credit facility with $5 million maximum availability. An Interim Order was entered by the court on September 20, 2002 limiting Interliant's availability under its credit facility to $1.5 million dollars through October 20, 2002. Interliant announced the closing of the agreement with Access Capital on September 26, 2002.