Pacific Sunwear of California filed with the U.S. Bankruptcy Court a seventh amendment to its debtor-in-possession financing agreement.
According to documents filed with the Court, “The Prepetition Term Loan Agent shall receive additional adequate protection in the form of a consent right (such consent not to be unreasonably withheld or delayed in the case of consent requests regarding the Chapter 11 Case milestones described in clause 3 below only) to any (direct or indirect) amendment, modification or waiver of any terms or conditions under the DIP Credit Agreement or any other DIP Loan Documents, as and to the extent provided for in the Intercreditor Agreement, as well as with respect to any amendment, modification or waiver of (1) Section 6.13(g) of the DIP Credit Agreement, (2) Section 6.21 of the DIP Credit Agreement (or any component definition thereof), or (3) the Chapter 11 Case milestones set forth in Sections 6.22 and 8.01(r)(vi) and (xv) of the DIP Credit Agreement.”
The financing amendment continues, “In addition, the Debtors and the DIP Credit Parties shall not amend the DIP Credit Agreement or the DIP Loan Documents to add any financial covenants (including budget covenants) or Chapter 11 Case milestones without the consent of the Prepetition Term Loan Agent. Pursuant to the Final DIP Order, the Seventh Amendment will become effective on August 26, 2016 without further notice or a hearing.”
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