Atna Resources Interim Financing Approved


According to the U.S. Bankruptcy Court docket, the Court approved, on an interim basis, Atna Resources’ motion for entry of an order (i) authorizing the Debtors to obtain post-petition financing; (ii) authorizing the use of cash collateral; (iii) granting liens, including priming liens, and superpriority claims, (iv) granting adequate protection, (v) scheduling a final hearing and (vi) granting related relief.

As previously reported, “The DIP Motion seeks authority to use cash collateral and to obtain a $4,000,000 postpetition financing facility (the ‘DIP Facility’) from Waterton Precious Metals Fund II Cayman – the Debtors’ prepetition senior secured lender – or a designated affiliate (‘Waterton’)….Absent this relief, the Debtors will not be able to successfully transition into chapter 11, pay their operating and restructuring costs and expenses, and otherwise preserve and maximize the value of their assets for the benefit of their creditors and estates during these cases…the Debtors, in consultation with their advisors, project that they will need access to approximately $3,511,000 in cash collateral and $1,265,000 in postpetition financing on an interim basis to avoid irreparable harm to their restructuring efforts from the Petition Date.”

Court-filed documents continue, “Importantly, having access to this financing will also give the Debtors’ suppliers and other parties with whom the Debtors do business confidence that they will receive prompt payment if they determine to continue supporting the Debtors during this critical period. On a final basis, the Debtors project that they will need the ability to use all of their cash collateral and up to $4 million in postpetition financing through the week ending May 20, 2016 (the ‘Budget Period’).”

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