Crescent Oil granted court approval of $3.3 million DIP loan

By Jennifer Lanning Drey

Portland, Ore., March 19 - Crescent Oil Co., Inc. was granted final court approval to obtain $3.3 million of debtor-in-possession financing from M&I Marshall & Ilsley Bank, according to an attorney.

The approval came late Wednesday from the U.S. Bankruptcy Court for the District of Kansas.

When requesting approval for the financing, the company said the loan would allow it to complete the orderly liquidation of its assets.

Interest will be Libor plus 600 basis points.

The DIP facility will mature on the earlier of April 15, upon the sale of substantially all company assets, conversion or dismissal of the bankruptcy case, the effective date of a plan of reorganization or liquidation that calls for repayment in full of the loan and upon appointment of a trustee for the company's bankruptcy case.

Crescent Oil, an Independence, Kan.-based fuel distributor, filed for bankruptcy on Feb. 7. Its Chapter 11 case number is 09-20258.

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