Mountain Express gets final approval of $123.65 million DIP package

By Sarah Lizee

Olympia, Wash., April 26 – Mountain Express Oil Co. received final approval of a $123.65 million senior secured super-priority debtor-in-possession financing package via prepetition secured lenders, according to a final order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The DIP financing package was upsized prior to entry into the final order.

On March 23, the company filed an emergency motion seeking approval of the DIP package, which initially consisted of a $28.6 million new money term loan and an $85.8 million rollup of prepetition debt.

Following the interim order, the company was allowed to borrow $20 million under the new money term loan.

Now, the DIP financing consists of $37.85 million in new money, in addition to the $85.8 million rollup, which is fully available following the final order.

First Horizon Bank is the administrative agent.

The DIP financing is subject to interest of 11% per annum, up from 10% initially. There is a 5% facility fee on the new money.

The financing is set to mature in 120 days from the petition date, subject to earlier termination upon the occurrence of some events.

The Alpharetta, Ga.-based fuel distributor filed Chapter 11 bankruptcy on March 18 under case number 23-90147.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.