The U.S. Bankruptcy Court issued an order approving Energy Future Intermediate Holdings (EFIH) and EFIH Finance’s motion for entry of an order (a) authorizing the EFIH Debtors to enter into a first amendment to the EFIH debtor-in-possession credit agreement, (b) authorizing entry into an engagement letter, (c) authorizing payment of related fees and expenses, (d) authorizing the use of cash collateral and (e) modifying automatic stay.
As previously reported, “The EFIH First Lien DIP Credit Agreement and the EFIH Debtors’ use of EFIH Cash Collateral (as defined in the EFIH First Lien DIP Motion) expire on December 19, 2016. For the EFIH Debtors to maintain postpetition financing while they complete their chapter 11 reorganization – including a merger transaction, estimated to close in early 2017 – the EFIH Debtors seek to (a) extend the maturity of the EFIH First Lien DIP Facility and use of EFIH Cash Collateral by approximately six months, from December 19, 2016 to June 30, 2017; (b) provide the EFIH Debtors the right to extend the EFIH First Lien DIP Facility for an additional six months, from June 30, 2017 to December 30, 2017; and (c) increase the principal amount of the EFIH First Lien DIP Facility by $75 million, from $5,400 million to $5,475 million.”
Court-filed documents continue, “The EFIH First Lien DIP Facility contains a covenant requiring the EFIH Debtors to maintain at all times at least $150 million of liquidity. For the EFIH Debtors to comply with such covenant through at least June 30, 2017, the EFIH Debtors seek to increase the principal amount of the EFIH First Lien DIP Facility by $75 million, from $5,400 million to $5,475 million.”
The Court also approved the Debtors motion to file under seal certain fees in connection with the proposed amendment as well as an order directing that this information remain under seal and not be made available to anyone without the consent of the EFIH Debtors and Deutsche Bank Securities, the lead arranger, except to (i) the Court, (ii) the office of the U.S. Trustee on a confidential basis and (iii) the advisors to Energy Future Holdings’ creditors’ committee.
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