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Triad Guaranty Debt Incurrence Approval Sought

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Triad Guaranty filed with the U.S. Bankruptcy Court a motion for interim and final order authorizing the Debtor or incur post-petition debt. The borrower is Triad Guaranty and the lender is William T. Ratliff, III. The maximum aggregate debt available is $20,000 for the final period. The motion explains, “The substantive provisions of the loan are unchanged from those approved in the Prior Final Order. Furthermore, the terms of the proposed financing are identical to those previously approved by this Court.”

In addition, “Maturity Date is the earliest of: (a) the date on which the United States Bankruptcy Court for the District of Delaware approves a debtor-in-possession lending transaction with any other lender, (b) the effective date of any plan of reorganization of Borrower, (c) the date of the conversion of the Borrower’s bankruptcy case to a case under chapter 7 of title 11 of the United States Code, or the dismissal of this bankruptcy case, and (d) the date on which all amounts under the Note shall become due and payable under section 3 of the Note.”

The motion continues, “Like most business decisions, the Debtor’s decision to obtain the postpetition financing will both confer a number of benefits on the Debtor and impose several obligations. The postpetition financing should provide the Debtor with sufficient capital to meet these certain critical and time sensitive needs as it attempts a restructuring. In exchange for the foregoing, the Debtor has agreed, among other things, that the postpetition indebtedness shall be entitled to superpriority administrative expense treatment.”

The Court scheduled a hearing on April 4, 2017, with objections due by March 29, 2017.

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