AmeriFirst’s proposed DIP facility draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Oct. 13 – AmeriFirst Financial, Inc.’s proposed $5 million debtor-in-possession facility with prepetition lenders RCP Credit Opportunities Fund Loan SPV (Fund III), LP and RCP Customized Credit Fund (Fund IV-A), LP drew an objection from the U.S. trustee overseeing the case, according to documents filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Regions 3 and 9 U.S. trustee Andrew R. Vara said the debtors are seeking to prematurely end the challenge period on Oct. 20 and bind their estates and all interest parties to extremely broad and generous release and claim waivers the debtors granted through the interim DIP order to the prepetition lenders.

“This action, while always one of great concern, is particularly egregious here where the prepetition lenders are also the DIP lender and only shortly before the bankruptcy filings became the owners of both debtors,” Vara said in the objection.

“Respectfully, the proposed final DIP order should not be entered for this reason.”

AmeriFirst Financial is a mortgage lender based in Mesa, Ariz. The company filed bankruptcy on Aug. 24 under Chapter 11 case number 23-11240.

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