High Voltage DIP, use of cash collateral approved

By Caroline Salls

Pittsburgh, April 26 - High Voltage Engineering Corp.'s U.S. Trustee received approval from the U.S. Bankruptcy Court for the District of Massachusetts Tuesday for an up to $10 million revolving debtor-in-possession financing facility and the use of cash collateral.

Trustee Stephen S. Gray said in the April 19 motion that the company will need to draw on the financing and use the cash collateral no later than the week of May 9 in connection with the sale of High Voltage's four companies, the Evans Analytical Group, Robicon Corp., High Voltage Engineering Europa BV and ASIRobicon SpA.

"All of the trustee's sale negotiations are predicated on the debtors' business groups being sold as going concerns," Gray said in the filing. "That status, and therefore the potential sales themselves, will be severely jeopardized if the trustee does not have access to the funds."

The trustee had been granted the ability to use cash collateral in four previous orders. His most recent authorization expired on April 23.

The facility will be due on the earlier of Dec. 31 or the sale of the Robicon and Evans businesses and will carry an interest rate of Libor plus 700 basis points. There is a 150 basis point unused fee.

Proceeds will be used for working capital, payment of administrative expenses and general corporate purposes.

The lenders are Coast Special Situations Fund LLC and Whitebox Hedged High Yield Partners LP.

High Voltage filed for Chapter 11 of Feb. 8. Its case number is 05-10787.

The New Kensington, Pa., maker of industrial power control and surface analysis products previously emerged from Chapter 11 on Aug. 10, 2004 under a restructuring that converted its 10½% senior notes to equity in the reorganized company.

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