Relativity Media filed with the U.S. Bankruptcy Court a motion for entry of interim and final orders: (i) authorizing the Debtors to (a) obtain postpetition financing and (b) use cash collateral; (ii) granting adequate protection; (iii) modifying the automatic stay; (iv) scheduling a final hearing; and (v) granting related relief.
The Debtors seek to enter into a $4,000,000 senior secured revolving debtor-in-possession (“DIP”) financing facility (with $1,600,000, available as the interim amount). The DIP lender for the financing is UltraV Holdings. The financing will bear an interest rates of 10% per annum. The motion explains, “the proposed DIP Facility will provide the Debtors with an interim solution to the Debtors’ liquidity needs. The DIP Note and the DIP Loans are reasonably priced, the DIP Loan Documents were negotiated in good faith and at arms’ length, and the DIP Facility is the Debtors’ only postpetition financing option available…the Debtors believe that authorization to obtain the DIP Facility, and to use the Cash Collateral, is in the best interests of the Debtors, their estates and creditors, and should be granted.” The Court scheduled a May 9, 2018 hearing on the financing motion.
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