TerraVia Bankruptcy Financing Approved


The U.S. Bankruptcy Court issued a final order approving TerraVia Holdings’ motion to obtain post-petition secured financing.

As previously reported, “The Debtors seek entry of interim and final orders: (a) authorizing the Borrower to enter into…the new money debtor-in-possession financing facility (the ‘DIP Facility’) in the aggregate principal amount of $10,000,000 to be funded by certain members of the Consortium (in their capacity as such, the ‘DIP Lenders’) on the terms and conditions set forth in the Interim Order and the DIP Documents….Commitment Fee is a fee of 4.00% of the obligation of the DIP Lenders to make a DIP Loan to the Borrower, earned as of the date on which all of the conditions precedent set forth in DIP Credit Agreement shall have been satisfied or waived in accordance with the DIP Credit Agreement (the ‘Closing Date’), payable in cash on the Maturity Date or any earlier Termination Date.”

In addition, “The loans under the DIP Facility will bear interest at LIBOR plus the applicable margin of 12.00%. During the continuance of a payment event of default under the DIP Documents, overdue amounts will bear interest at an additional 2.00% per annum.” Wilmington Fund Savings Society will serve as the administrative agent.

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