Raser Technologies seeks court approval of $8.75 million DIP loan

By Caroline Salls

Pittsburgh, May 2 - Raser Technologies, Inc. requested court approval of an $8.75 million debtor-in-possession facility, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Wilmington Trust Co. is the administrative agent.

Raser said the DIP financing will be used to fund its working capital needs during its bankruptcy proceedings.

The facility will mature on the earliest of May 20 if the final order has not been entered by 11:59 p.m. ET on that date; Aug. 11 if the company's plan of reorganization has not been confirmed by 11:59 p.m. ET on that date; the effective date of a plan of reorganization and the Aug. 26 final maturity date.

Interest will be 15%.

The company is seeking interim access to $750,000 of the DIP loan.

Provo, Utah-based Raser is a technology licensing and development company focused on geothermal power generation. The company filed for bankruptcy on April 29, and its Chapter 11 case number is 11-11315.

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