The DIP financing motion explains, “The Debtors commenced these chapter 11 cases to stabilize business operations, address near-term debt maturities, and facilitate a value-maximizing restructuring transaction. The Debtors, with the support of Mercuria…intend to undertake a robust, 120-day process to market their business as a going concern and solicit highest or otherwise best offers for their assets, to the benefit of all parties in interest. In connection with its role as the stalking horse purchaser for the Debtors’ assets, Mercuria has agreed to fund these chapter 11 cases with $532 million in DIP financing through a $160 million debtor-in-possession U.S. revolving credit facility, a $300 million debtor-in-possession global revolving credit facility, and a multiple delayed draw term loan credit facility in an aggregate principal amount of $72 million (collectively, the ‘DIP Facilities’), all provided by Mercuria or its affiliates. The DIP Facilities allow the Debtors to immediately access the U.S. and Global DIP Revolving Credit Facilities and ABL Cash Collateral (each, as defined below) thereunder so they can continue to pay their operating expenses and signal to their lenders, many of whom are located abroad and are not familiar with chapter 11 of title 11 of the United States Code (the ‘Bankruptcy Code’), that operations will continue in the ordinary course. In addition, the DIP Facilities will provide sufficient liquidity to ensure that the Debtors are able to continue paying their debts as they come due, notwithstanding the restrictions imposed on the Debtors by the borrowing bases under the Prepetition Credit Facilities, conduct a competitive marketing process for their assets and fund these chapter 11 cases, sending a strong message to customers, vendors, employees, and stakeholders that their restructuring is both well-funded and well-positioned to succeed in the process.”
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The post Aegean Marine Petroleum Network – Seeks Approval for $532 million of DIP Financing to be Provided by Stalking Horse Bidder, Mercuria Energy Group appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.