| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Conexant Systems Inc. > News item |
Conexant Systems wins interim access to $5 million of DIP financing
By Jim Witters
Wilmington, Del., March 1 - Conexant Systems Inc. won interim access to $5 million of its $15 million of debtor-in-possession financing from its secured lender during a March 1 hearing in the U.S. Bankruptcy Court for the District of Delaware.
The financing is through Conexant's equity sponsors and secured lender QP SFM Capital Holdings Ltd., an entity managed by Soros Fund Management LLC.
The DIP facility is intended to carry the semiconductor company through an expedited bankruptcy process that calls for the confirmation of a plan within 85 days and a plan effective date within 120 days, said Conexant attorney Joshua Sussberg.
The agreement also requires a hearing on the disclosure statement within 45 days.
If any of the milestones embedded in the DIP agreement are missed, the lender may initiate the sale of substantially all of the company's assets, with QP SFM Capital Holdings Ltd. as the stalking-horse bidder, Sussberg said.
Conexant filed its plan of reorganization and disclosure statement on Feb. 28.
DIP financing
The secured lender has agreed to provide $15 million of DIP financing, which will convert into equity in the reorganized company.
Interest will be Libor plus 700 basis points.
The facility will mature on the earliest of 120 days from closing, the plan effective date and the closing of a sale of substantially all company assets.
No commitment fee will be paid.
Judge Mary F. Walrath scheduled a final DIP hearing and a hearing for the approval of a disclosure statement for 11:30 a.m. ET on April 10.
Conexant, a fabless semiconductor company based in Newport Beach, Calif., filed for bankruptcy on Feb. 28. The Chapter 11 case number is 13-10367.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.