Erickson filed with the U.S. Bankruptcy Court a motion for entry of an order (1) authorizing its entry into and performance under (a) the exit financing commitment letter and (b) the fee letter and (2) authorizing the payment of certain fees associated with the commitment letter and the fee letter.
According to documents filed with the Court, “The Debtors have negotiated terms and conditions of the New First Lien Credit Facility with MidCap Financial Trust, including any affiliate, ‘MidCap’….Access to the New First Lien Credit Facility is one of the key components of the Debtors’ restructuring and essential to emergence from the Chapter 11 Cases. Specifically, without entry into the Commitment Letter and the Fee Letter, the Debtors and their stakeholders would have no assurance that they would be able to make the Distributions required under the Plan and emerge from bankruptcy protection.”
In addition, “Pursuant to the Commitment Letter, MidCap will provide the New First Lien Credit Facility with a commitment in the aggregate principal amount of up to $150 million. MidCap will be entitled to certain fees as provided in the Commitment Letter and the Fee Letter, including a commitment fee of 1% of the loan commitment amount (the ‘Commitment Fee’). Further, the Debtors have provided MidCap an initial $300,000 deposit for MidCap’s reasonable and documented costs, fees and expenses (the ‘Initial Expense Deposit’). Pursuant to the Commitment Letter the Debtors are required to fund an additional $150,000 deposit to reimburse MidCap for its reasonable and documented out-of-pocket expenses (the ‘Commitment Expense Deposit’).”
The Court scheduled a March 21, 2017 hearing to consider the motion.
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