Bicent secures access to $32 million in DIP facility letters of credit

By Caroline Salls

Pittsburgh, May 8 - Bicent Holdings LLC's interim debtor-in-possession financing order has been amended to give the company access to the full $32 million of letters of credit available under the DIP facility, according to an order filed on May 8 with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company has interim access to $6 million of its proposed $57 million in DIP financing under the interim order as well as the $32 million synthetic letter-of-credit facility.

Under the court's April 24 interim financing order, Bicent was only granted access to $2.23 million of the letters of credit.

Since the bulk of the dollar amount of the company's outstanding letters of credit are not scheduled to mature until June, Bicent said it believed at the time of the original interim DIP loan hearing that $2.23 million would be enough to allow it to operate its business pending the final DIP loan hearing.

However, while the two largest outstanding letters of credit, totaling $29,625,000, are not scheduled to expire until the close of business on June 10, the company said the underlying agreements with the beneficiaries of those letters of credit call for them to be renewed or extended 30 days before the expiration date.

As a result, Bicent said it would not be able to renew or extend the outstanding letters of credit within that time period without access to the balance of the DIP facility letters of credit.

Tuesday's order specified that the letters of credit can only be used to replace the pre-bankruptcy letters of credit as they mature.

The final hearing on the DIP facility is scheduled for May 17.

Bicent Holdings is the Lafayette, Colo.-based parent company for Bicent Power LLC, which operates electric generating facilities. The company filed for bankruptcy on April 23. Its Chapter 11 case number is 12-11304.

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