A bankruptcy court judge in Delaware has approved financing to WCI Communities operating as it reorganizes under Chapter 11 protection.

Under the order approved Sept 23, WCI may enter into a $150 million debtor-in-possession (DIP) financing agreement, which includes an $80 million term loan, a $70 million revolving credit facility and gives the company an additional $100 million in liquidity to keep it going while it develops a plan to restructure its balance sheet.

The Bonita Springs, Fla.-based business, which filed for bankruptcy relief on Aug. 4, will use about $50 million of the DIP term loan to retire the company's outstanding tower loan. WCI also has permission to use the $68 million in cash it has on hand for operating expenses.

The DIP loans are being made by a group of financial institutions led by Wachovia Bank, National Association acting the administrative agent and Bank of America, N.A. is acting as collateral agent.

"The willingness of our lenders to continue investing in our business in this difficult economic environment provides a real boost to our restructuring efforts," said interim president and CEO David Fry in a press release announcing the agreement. "The DIP facility, combined with our cash on hand, which currently substantially exceeds plan, provides us with adequate financial resources to fund our post-petition customer, vendor, and employee obligations and other requirements pending confirmation of a plan."