BurgerFi Secures Court Approval for $3.5M DIP Financing Amid Bankruptcy Proceedings

BurgerFi International Inc. on Monday received interim Court approval of its “first day” motions designed to facilitate and ensure the continued and uninterrupted operations of the company’s 144 locations.

The company can access $3.5 million of the debtor-in-possession (DIP) financing provided by an affiliate of TREW Capital Management. The Court also approved the use of the Company’s existing employee benefits, cash management systems, and customer programs. With the DIP financing approved by the Court, the Company has the liquidity to stabilize its operations and work with its vendors and landlords to meet the high standards for the BurgerFi and Anthony’s brands.

As part of the financing agreement, the Company intends to propose a sale process and bidding procedures for a sale with the support of its lenders. The “second day” hearing seeking final approval for the Company’s requests is scheduled for October 7, 2024.

The Company filed its voluntary petitions on September 11, 2024, in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.

BurgerFi’s last Tennessee location recently closed. There were two locations: one in Brentwood, which closed in 2023, and one in Hendersonville, which closed last month.