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SunEdison Replacement Financing Approval Sought

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SunEdison filed with the U.S. Bankruptcy Court a motion for order authorizing Debtors (a) to obtain replacement post-petition financing pursuant to Bankruptcy code (b) to utilize cash collateral and (c) to repay existing post-petition financing.

The motion explains, “To bridge the gap period between the Debtors’ projected timeline for confirmation of their proposed Plan and consummation of the Jointly Supported Transactions that are the bedrock of that Plan, the Debtors have also had to address the impending April 26, 2017 maturity (the ‘Maturity Date’) of their Existing DIP Facility. In this regard, the Debtors and their advisors engaged in a comprehensive outreach and negotiation process with various potential debtor-in-possession ‘DIP’) financing sources over the course of nearly 12 weeks, and ultimately coalesced around the senior secured superpriority debtor-in-possession term loan facilities (the ‘Replacement DIP Facilities’) that are the subject of this Motion.”

In addition, “The Replacement DIP Facilities, which will provide a new maturity date of up to one year from the Closing Date…will be comprised of (i) new money term loans (the ‘Replacement New Money DIP Loans’) in an aggregate principal amount not to exceed $640 million, the proceeds of which will be used, among other things, to pay off the Existing DIP Facility in full as of the Closing Date (other than the Remaining Second Lien Obligations – i.e., approximately $300 million of the Tranche B Roll-Up Loans…and (ii) term loans in an aggregate principal amount equal to the aggregate outstanding principal amount of the Remaining Second Lien Obligations, which shall be deemed ‘rolled-up’ and outstanding in their entirety as loans under the Replacement DIP Credit Agreement (the ‘Second Lien Roll-Up Loans’).”

The motion continues, “In addition to their payoff of the vast majority of the Debtors’ outstanding obligations under the Existing DIP Facility, the Replacement DIP Facilities will provide the Debtors with the necessary liquidity to drive these Chapter 11 Cases toward Plan confirmation and, ultimately, emergence. Moreover, the Replacement DIP Facilities contain a number of favorable terms as compared to the Existing DIP Facility.”

The Court scheduled an April 25, 2017 hearing on the motion, with objections due by April 18, 2017.

Read more SunEdison bankruptcy news.

The post SunEdison Replacement Financing Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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