According to the U.S. Bankruptcy Court docket, the Court approved, on an interim basis, HII Technologies’ motion for entry of an order authorizing Debtors to obtain post-petition financing.
As previously reported, “The financing consists of a senior secured super-priority term loan facility (the ‘DIP Facility’) in an aggregate principal amount of up to $12 million (the ‘Commitment’), comprised of: (a) an amount up to $500,000 in respect of new money funding (the ‘New Money Loan’) and (b) a dollar-for-dollar roll-up of $11.5 million in respect of outstanding loans and obligations under the Prepetition Credit Agreement and Prepetition A/R Agreement (the ‘Roll-Up Loan’) occurring promptly upon the entry of the final order (the ‘Final Order’).” The Financing will bear an interest rate equal to the existing rate under the pre-petition credit agreement, which is 13 3/4%. The default rate is 2.00% additional per annum, with interest payable on demand in cash. McLarty Capital Partners SBIC (MCP) is the administrative and collateral agent, and (MCP) and Heartland Bank will act as the D.I.P. lenders.
The Court scheduled an October 5, 2015 final hearing on the financing motion. Read more HIIT bankruptcy news.