A’GACI filed with the U.S. Bankruptcy Court a motion for entry of an order (i) authorizing entry into the Exit Financing Commitment Letter, and (ii) authorizing the payment of certain fees associated with that letter agreement.
The motion explains, “Access to the New Credit Facility is one of the key components of the Debtor’s restructuring and essential to emergence from the Chapter 11 Case. Specifically, without entry into the Commitment Letter, the Debtor and its stakeholders would have no assurance that the Debtor would be able to make the distributions required under the Plan and emerge from bankruptcy protection….Pursuant to the Commitment Letter, Second Avenue will provide the New Credit Facility with revolving advances in an aggregate principal amount of up to $12 million. Second Avenue will be entitled to certain fees as provided in the Commitment Letter, including a closing fee, certain incremental closing fees, a commitment fee, an unused line fee and a monitoring fee. With regard to the timing of payments, (i) the commitment fee was paid in connection with the execution of the Commitment Letter, (ii) the closing fee, unused line fee, and monitoring fee will be due and payable only if the New Credit Facility closes, and (iii) the incremental closing fees will be due and payable only if the Debtor requests and borrows under the incremental loans described in the commitment letter. The Debtor has also agreed to reimburse Second Avenue from time to time on demand for all reasonable and documented out-of-pocket fees, costs, and expenses.”
The Court subsequently approved the expedited hearing motion and scheduled a June 12, 2018 hearing on the Exit Financing Commitment Letter and associated fees.
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