Dune Energy secures final court approval of $10 million DIP facility

By Caroline Salls

Pittsburgh, April 9 – Dune Energy, Inc. received final court approval to obtain $10 million debtor-in-possession financing, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Texas.

As previously reported, Dune obtained a commitment for the DIP loan from its pre-bankruptcy lenders and Bank of Montreal as the administrative agent and collateral agent.

The facility will mature on the earliest of 130 days after the bankruptcy filing date, the occurrence of an event of default under the DIP credit agreement, the effective date of a Chapter 11 plan and the closing date for the sale of all or substantially all of Dune’s assets.

Interest will accrue at the alternate Base rate plus 275 basis points.

Dune is a Houston-based energy company that filed for bankruptcy on March 9. The Chapter 11 case number is 15-10336.

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