EYP Group Holdings gets court approval of $5 million DIP facility

By Sarah Lizee

Olympia, Wash., May 25 – EYP Group Holdings, Inc. received final court approval of a $5 million debtor-in-possession facility, according to a final order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The lender is Ault Alliance, Inc., a private equity firm owned by BitNile Holdings, Inc., formerly known as Ault Global Holdings, Inc., as previously reported.

The loan bears interest at 12% per annum and will mature on June 30. There is a 2% commitment fee and a 2% exit fee.

The DIP facility includes a roll-up of $6.54 million of prepetition secured debt.

As reported, the official committee of unsecured creditors had objected to the financing said questioned whether the debtors actually need the DIP facility in the first place.

The committee said it understands that the company’s businesses haven’t experienced any material disruptions since the petition date, and as such the group doesn’t believe these are cases where the availability of “comfort” financing is needed.

The group said that, given the DIP lender’s intention to credit bid the full amount of the facility, the company should be required to justify why any remaining advance on the facility should be authorized.

“Such scrutiny is particularly warranted, moreover, where the DIP lender not only intends to credit bid, but also seeks to do so while exerting significant control over the timeframe for these cases and by leveraging approval of the DIP facility against the debtors and other parties in interest as a condition of closing on its proposed asset purchase,” the committee said in its objection.

Albany, N.Y.-based EYP is an integrated design firm specializing in higher education, health care, government and science & technology. It filed bankruptcy on April 24 under Chapter 11 case number 22-10367.

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