Global Eagle interim DIP financing, other first-day motions OK’d

By Caroline Salls

Pittsburgh, July 24 – Global Eagle Entertainment Inc. obtained interim approvals from the U.S. Bankruptcy Court for the District of Delaware for its first-day bankruptcy motions, including approval to access $30 million of a proposed $80 million in debtor-in-possession financing from the company’s investor group, according to a news release.

Global Eagle said these approvals will help ensure that its day-to-day operations continue without interruption during the court-supervised process, which will be used to facilitate the proposed sale of the business to an investor group comprising approximately 90% of Global Eagle’s first-lien term loan holders.

The sale is subject to court approval and other conditions, including the receipt of higher and better offers.

“The support from the investor group is a testament to their confidence in our business, our team and our future,” Global Eagle chief executive officer Joshua Marks said in the release.

As previously reported, the new DIP financing, together with cash on hand and cash generated from ongoing operations, is expected to provide ample liquidity to support the company’s operations during the sale process.

The facility will mature in six months, subject to a 30-day extension.

Interest will accrue at Libor plus 1,000 basis points, with a 1.25% Libor floor.

The final DIP financing approval hearing is scheduled for Aug. 17.

In addition, the court authorized the company to continue payment of employee wages, salaries and benefits, and to pay vendors, suppliers and other partners to its affected U.S. subsidiaries in full under normal terms for goods and services provided on or after the Chapter 11 filing date of July 22.

Latham & Watkins LLP is serving as the company’s legal counsel. Greenhill & Co., Inc. is serving as financial adviser, and Alvarez & Marsal is serving as restructuring adviser.

Based in Los Angeles, Global Eagle is a provider of media, content, connectivity and data analytics to markets across air, sea and land. The Chapter 11 case number is 20-11835.

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