Marco Polo Seatrade seeks access to $1 million stand-by DIP facility

By Caroline Salls

Pittsburgh, Aug. 8 - Marco Polo Seatrade BV requested court approval to obtain $1 million in post-bankruptcy financing from MPS DIP LLC or its designee, according to an Aug. 8 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said MPS DIP is comprised of some of its non-debtor related parties.

Interest will be 5%, and the loan will mature on the earliest of Aug. 1, 2012, the effective date of a plan of reorganization, the conversion of the company's bankruptcy case, termination of Marco Polo Seatrade's exclusivity and the appointment of an examiner or trustee in the bankruptcy case.

The company said the DIP facility is a standby facility conditioned on its receipt of access to cash collateral.

Under the DIP facility term sheet, Marco Polo Seatrade would have the right to draw down amounts necessary to cover costs where no cash collateral is available or if use of the cash collateral would cause the company to exceed a 15% line-item variance.

The company is seeking interim access to $563,986 of the DIP financing.

According to the release, the DIP financing, together with the cash collateral use, will help Marco Polo Seatrade to further stabilize its operations.

Marco Polo Seatrade, an Amsterdam-based vessel owner, filed for bankruptcy on July 29. The Chapter 11 case number is 11-13634.

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