Delta Petroleum DIP loan amendment OK'd in light of sale date changes

By Jim Witters

Wilmington, Del., March 28 - Delta Petroleum Corp. received approval Wednesday for a 30-day extension of deadlines in its debtor-in-possession financing facility to accommodate the dates in its amended asset sale procedures.

The approval extending the DIP loan's letter-of-intent requirement to April 30 from March 31 and the asset purchase agreement requirement to May 30 from April 30 came during a hearing in the U.S. Bankruptcy Court for the District of Delaware.

The court also approved an increase of $1.4 million to the DIP facility to $58.9 million to carry the business through the additional weeks before the sale.

The company will pay a $287,500 extension fee.

The company was originally required to deliver a letter of intent or similar agreement for the sale of substantially all of its assets or sponsorship of a plan of reorganization by March 31 and deliver an asset purchase agreement or a disclosure statement for a reorganization plan to the administrative agent by April 30.

As previously reported, Delta Petroleum received court approval to amend the bid procedures, setting the bid deadline for April 18, the auction for April 20 and the sale hearing for May 1.

Delta Petroleum, a Denver-based oil and gas exploration and development company, filed for bankruptcy on Dec. 15. Its Chapter 11 case number is 11-14006.

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