Murray Metallurgical Coal secures interim OK to access DIP financing

By Caroline Salls

Pittsburgh, Feb. 18 – Murray Metallurgical Coal Holdings, LLC received court approval to access $25.7 million in new-money debtor-in-possession term loans on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Ohio.

The final hearing is scheduled for March 12.

In addition to access to $16.4 million of new-money senior term loans and $9.3 million of new-money junior term loans, the interim order allows the company to use $10.75 million in rolled up pre-bankruptcy term loan obligations.

The financing is being provided by Murray Metallurgical’s take-back lenders and parent Murray Energy Holdings Co.

As previously reported, the company is seeking final court approval to obtain a first-out senior DIP facility not to exceed $50.4 million and, upon the signing of a stalking horse purchase agreement in connection with a sale of its Maple Eagle assets, a junior DIP facility consisting of up to $18.2 million of new-money term loans, which includes amounts necessary to fund Maple Eagle and debtor Murray Alabama Minerals, LLC.

The financing will be used to pay the costs associated with the Murray Metallurgical cases, including the start-up costs related to the resumption of mining operations at Oak Grove.

Wilmington Savings Fund Society, FSB will act as administrative agent and collateral agent for both facilities.

The senior facility will mature on the earliest of the six-month anniversary of the closing date, 33 days after the bankruptcy filing date if the final order has not been entered, the closing of a sale of the company’s assets, other than the Maple Eagle sale, acceleration of the loans and termination of the commitments and the effective date of a Chapter 11 plan.

The junior facility has the same maturity date, except that the sale closing is not a condition for maturity of that loan.

Interest will accrue on the senior facility at a rate of 14.5% and on the junior facility at 16.5%.

Murray Metallurgical is based in St. Clairsville, Ohio. The company filed bankruptcy on Feb. 11 under Chapter 11 case number 20-10390.

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