ResMAE granted interim approval of $7.98 million DIP, $250 million repurchase agreement

By Caroline Salls

Pittsburgh, Feb. 14 - ResMAE Mortgage Corp. obtained interim approval of its $7.98 million debtor-in-possession facility and $250 million master repurchase agreement facility, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for March 5.

The lender for both facilities is Credit Suisse.

As previously reported, the working capital DIP will be a revolving credit facility due on the earliest of March 5, the company's termination of the facility or upon occurrence of an event of default.

Interest will be Libor plus 300 basis points and will increase to Libor plus 500 bps upon an event of default.

Under the structure of the repurchase agreement facility, Credit Suisse can buy mortgage loans from ResMAE at its discretion at a purchase price of the lesser of the market value or outstanding principal amount of the mortgage.

The total purchase price of all mortgage loans bought and sold under the repurchase agreement cannot exceed $250 million.

The termination date of the repurchase agreement facility is March 5.

ResMAE must make a monthly payment equal to the interest rate on each mortgage loan sold.

ResMAE, a mortgage lender based in Brea, Calif., filed for bankruptcy on Jan. 12. Its Chapter 11 case number is 07-10177.

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