Chieftain Sand secures final approval of $2.1 million DIP facility

By Caroline Salls

Pittsburgh, Feb. 1 – Chieftain Sand and Proppant, LLC received final court approval to access $2.1 million in debtor-in-possession financing, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The DIP lenders are from Energy Capital Partners Mezzanine Opportunities Fund A, LP, Energy Capital Partners Mezzanine Opportunities Fund B, LP and Energy Capital Partners Mezzanine Opportunities Fund, LP.

The DIP facility is comprised of an $850,000 term loan credit facility and a $1.25 million letter-of-credit facility.

The facility will mature on March 31.

Interest will accrue at a rate of 10%.

New Auburn, Wis.-based Chieftain is a privately owned producer of hydraulic fracturing sand. The company filed bankruptcy on Jan. 9 under Chapter 11 case number 17-10064.

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