Hovensa gets access to $10 million of DIP loan; final hearing Oct. 8

By Caroline Salls

Pittsburgh, Sept. 17 – Hovensa LLC was granted court approval to use $10 million of a proposed $40 million debtor-in-possession facility on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of the Virgin Islands.

The final hearing is scheduled for Oct. 8.

The DIP financing lenders are HOVIC and PDV-VI.

Interest will be 9%.

The DIP loan will mature on the earliest of the date of the sale closing, 150 days from the bankruptcy filing date, the date the asset purchase agreement is terminated or becomes ineffective, upon seven business days’ notice that the sale process has been abandoned or is unlikely to result in closing before 150 days from the bankruptcy filing date and upon acceleration of the loan upon occurrence of an event of default.

Hovensa owns a crude oil refinery in St. Croix in the U.S. Virgin Islands. It is owned 50% by a subsidiary of Hess Corp. and 50% by a subsidiary of Petroleos de Venezuela, SA. The company filed bankruptcy on Sept. 15 under Chapter 11 case number 15-10003.

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