Rand Logistics filed with the U.S. Bankruptcy Court a motion for entry of an interim and final order (i) authorizing the Debtors to obtain post-petition D.I.P. financing; (ii) granting adequate protection liens and super priority administrative claims to the pre-petition second lien secured parties; (iii) scheduling a preliminary hearing and (iv) scheduling a final hearing.
The lender is Lightship Capital, and the motion explains, “The DIP Facility will provide up to $25,000,000 of financing (the ‘D.I.P. Financing’) to the Debtors upon approval of the Court and entry of the proposed Interim Order, with $10,000,000 to be funded immediately. Additionally, the terms of the DIP Credit Agreement and the proposed Interim Order reflect an agreement among the Debtors, the Prepetition First Lien Secured Parties, and the DIP Lender regarding the use of cash collateral. In sum, the parties have agreed that the Debtors’ cash collateral will be held in reserve by the Prepetition First Lien Agent until March 16, 2018 and the DIP Lender has agreed to fund all necessary expenses for the Debtors’ operations and these Chapter 11 Cases pursuant to the Budget through this time period.”
In addition, “If the Plan is not consummated on or prior to March 16, 2018, the Borrower shall pay a fee equal to $500,000, which shall be paid-in-kind in arrears by being added to the principal balance of the DIP Loans.”
Applicable Rate prior to the Outside Plan Consummation Date, is 6.00% per annum payable-in-kind and on & after the Outside Plan Consummation Date, 12.00% per annum payable in cash. Default Rate is the applicable interest rate plus 2.00% per annum, and with respect to any other overdue amount (including overdue interest), the interest rate applicable to the DIP Loans plus 2.00% per annum.
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