Opus South debtor seeks $4.4 million DIP loan

By Jennifer Lanning Drey

Portland, Ore., Aug. 25 - Opus South Corp. debtor Waters Edge One, LLC requested court approval to obtain $4.4 million in debtor-in-possession financing, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company is seeking interim access to $1.5 million of the financing.

Wachovia Bank, NA is the administrative agent.

Interest will be one-month Libor plus 9½%.

Opus South will pay a $43,985 arrangement fee and another $43,985 exit fee upon maturity of the loan.

The DIP loan will mature on the earliest of 12 months after the effective date of the DIP facility, the reduction of the facility to zero, suspension of the lenders' obligations to make loans under the agreement, acceleration of the obligations, the occurrence of both the closing of a sale of substantially all of the company's assets and final settlement or resolution of RMSSR claims in accordance with the terms of the pledge agreement, the effective date of a plan of reorganization and dismissal of the Waters Edge case.

According to a separate Monday filing, Wachovia has agreed to waive any administrative claims in connection with the DIP financing and to waive any deficiency claim except to the extent of recovery under a lawsuit and sale proceeds from Waters Edge.

The DIP funding will be used to fund the costs of litigation, operational expenses and a plan of reorganization.

Opus, an Atlanta-based design-build development firm, filed for bankruptcy on April 22. Its Chapter 11 case number is 09-11390.

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