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Monitor Co. Group wins final approval for $30 million DIP facility
By Jim Witters
Wilmington, Del., Dec. 4 - Monitor Co. Group LP received final approval for access to $30 million of debtor-in-possession financing during a Dec. 4 hearing in the U.S. Bankruptcy Court for the District of Delaware.
The approval came after the official committee of unsecured creditors reached an agreement with DIP lender Bank of America, NA, and after Caltius Partners IV, LP agreed to postpone its objection to the DIP financing until the sale hearing.
Norman Pernick, representing the creditors committee, said Bank of America agreed that the proceeds from causes of action in the case are not collateral under the DIP facility.
If the bank is not paid in full at the closing of any sale of Monitor's assets, the bank will pursue other avenues of collection for 180 days before seeking to encumber the proceeds from causes of action, Pernick told the court.
If the bank does pursue the proceeds, $2 million will be reserved for distribution to unsecured creditors.
Caltius Partners, a second-lien prepetition lender, objected to the use of cash collateral for a post-sale wind-down budget, saying it would diminish Caltius' collateral.
The parties agreed before the hearing that Caltius' issue was better suited for consideration at the sale hearing.
DIP terms
As previously reported, Bank of America is the administrative and collateral agent.
The DIP loan consists of a $15 million revolving credit facility and a $15 million letter-of-credit facility.
The DIP facility will mature on the earliest of 70 days after the bankruptcy filing date, closing of the sale of substantially all assets and acceleration of any of the DIP loans.
Interest is Base rate plus 425 basis points.
Monitor, a Cambridge, Mass.-based strategy consulting firm filed for bankruptcy on Nov. 7. Its Chapter 11 case number is 12-13042.
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