USA Synthetic Fuel gets final court OK to utilize $765,970 DIP loan

By Kali Hays

New York, April 15 – USA Synthetic Fuel Corp. received final approval of its $765,970 debtor-in-possession loan facility and authorization to use the cash collateral of its pre-bankruptcy lenders under a Wednesday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Third Eye Capital is the administrative and collateral agent.

The DIP loan will mature on the earliest of 75 days from the bankruptcy filing date, the effective date of a plan of reorganization or liquidation, closing of a sale of all or substantially all company assets, the occurrence of an event of default and the entry of an order approving alternative or additional DIP financing.

Interest will be 12%.

Cincinnati-based USA Synthetic is a provider of clean energy systems. The company filed for bankruptcy on March 17 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 15-10599.

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