Beleaguered toy manufacturer Basic Fun! will be able to stay in business after securing US$50 million in debtor-in-possession (DIP) financing from asset management firm Great Rock Capital. 

This news comes just one month after the Florida-based company filed for Chapter 11 bankruptcy, and Basic Fun! will use the funds to support ongoing business operations while it restructures for future growth opportunities, says Great Rock CEO Stuart Armstrong.  

Financial advisor Oppenheimer & Co. brokered the DIP facility, which is only available to businesses under US bankruptcy protection. If Basic Fun! is unable to fulfill its obligations, Great Rock will take over the toyco’s leveraged properties and assets in order to fulfill its claims. 

Basic Fun! is also trying to set up an additional US$15-million credit agreement with RBC and co-founders Jay Foreman and John MacDonald in order to provide more liquidity to the business. 

Hasbro has licensed Basic Fun! to make a wide range of toys based on its brands, including Lite-Brite arts & crafts, Tonka vehicles and Littlest Pet Shop collectibles. And the company is also Cloudco Entertainment’s global plush partner for Care Bears.