Allied Nevada gets interim use of $78 million DIP loan for operations

By Kali Hays

New York, March 12 – Allied Nevada Gold Corp. received interim authorization to access its proposed $78 million debtor-in-possession facility and use the cash collateral of its pre-bankruptcy lenders, under a March 12 order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the DIP facility will be used to support the company’s continued operations while in bankruptcy and has been agreed to with its noteholders.

Wilmington Savings Funds Society, FSB is the administrative agent and collateral agent.

Interest will be at 12% of which 6% will be payable in cash and 6% in kind.

The loan will mature after one year or on the sale of all the company’s assets or the effective date of the reorganization plan, whichever is soonest.

A final hearing is set for April 15.

Allied Nevada is a Reno, Nev., gold and silver miner that filed for bankruptcy on March 10. Its Chapter 11 case number is 15-10503.

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