Bankruptcy Judge Kevin R. Huennekens yesterday gave final approval to Health Diagnostic Laboratory Inc.’s debtor-in-possession financing deal, the Richmond (Va.) Times-Dispatch reported today. The financing arrangement with CVF Beadsea LLC, an affiliate of the Greenwich, Conn.-based investment firm Credit Value Partners, gives Richmond-based HDL access to a revolving loan of up $12 million, which the company can use to support its business operations while it tries to sell itself under chapter 11 protection. The ruling by Judge Huennekens enables HDL, a blood-testing company with a laboratory and office in downtown Richmond, to access the full loan amount despite objections raised by the company’s primary lender, BB&T Bank. BB&T has questioned the terms of the financing deal, which the bank argues inappropriately put its claims on HDL’s assets in a subordinate position to the new lender. Late Friday, the U.S. District Court in Richmond denied an appeal by BB&T that sought to overturn Judge Huennekens’ preliminary approval of the financing arrangements on Aug. 4.
