Approach Resources gets final court approval to access DIP financing

By Caroline Salls

Pittsburgh, Dec. 13 – Approach Resources Inc. obtained final court approval to access $16.5 million in new-money debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

JPMorgan Chase Bank, NA is the administrative agent.

The company said the DIP financing will provide valuable liquidity, which, along with cash on hand and cash generated from ongoing operations, will be used to support Approach’s business and any marketing and sale process.

The $41.25 million financing package also includes a $24.75 million refinancing roll-up term loan.

The DIP facility will mature on the earliest of seven months after Approach’s bankruptcy filing date, approval of a sale, the effective date of a Chapter 11 plan, the conversion or dismissal of the Chapter 11 cases and upon occurrence of an event of default.

Interest will accrue at the alternate Base rate plus 500 basis points or Libor plan 600 bps with a 2% Libor floor.

Approach Resources is a Fort Worth-based oil and gas company. The company filed bankruptcy on Nov. 18 under Chapter 11 case number 19-36444.

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