Ritchie Irish funds get court approval to amend DIP financing facilities

By Rebecca Melvin

New York, Jan. 24 - Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd. received court approval Thursday to raise its debtor-in-possession facilities enough to service portfolio assets until their sale closes.

Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York granted approval of the application after ascertaining that the funds essentially will be reimbursed at sale.

The DIP financing of Ritchie I, which is being sold to ABN Amro for $396 million, was raised to $51 million from $38 million.

Ritchie II is a much smaller fund being sold to Nutmeg Life Settlement Trust for $56.5 million.

Attorney Lewis Rosenbloom, of Dewey & LeBoeuf LLP, representing Ritchie, said "The increase is needed to service insurance premiums of the funds' asset portfolio, and will be reimbursed dollar for dollar when sale of those assets close."

Ritchie Capital Management's two Ireland-based hedge funds filed for bankruptcy on June 20, 2007. The Chapter 11 case number is 07-11906.

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