General Maritime gets court approval for $30 million interim DIP loan

By Caroline Salls

Pittsburgh, Nov. 18 - General Maritime Corp. received court approval to use $30 million of its proposed $100 million of debtor-in-possession financing on an interim basis, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Dec. 15.

Nordea Bank Finland plc, New York Branch is the administrative agent.

The company said Thursday that the initial amount of the DIP loan is $75 million; however, if needed, General Maritime will have access to another $25 million of future financing, subject to the applicable lenders' agreement, other conditions and further court order.

The facility will mature on the earliest of nine months from the bankruptcy filing date with a three-month extension option, the effective date of a Chapter 11 plan and the closing of a sale.

Interest will accrue at the adjusted eurodollar rate plus 650 basis points, with a 1.5% floor. If the borrowers exercise the extension option, the interest rate will be the adjusted eurodollar rate plus 700 bps, also with a 1.5% floor.

The new financing, combined with cash generated from the company's ongoing operations, will provide substantial liquidity, be used to support the business during the restructuring process and prevent customer interruption, Thursday's release said.

General Maritime is a New York-based provider of international seaborne crude oil transportation services. The company filed for bankruptcy on Nov. 17. The Chapter 11 case number is 11-15285.

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