November 19, 2018 – The Court hearing the EXCO Resources case issued an order approving the Debtors’ request to (i) enter into exit financing arrangements and (ii) incur and pay related fees, indemnities, and expenses [Docket No. 1281].
As previously reported [Docket No. 1273], “The Debtors, in consultation with their advisors, have negotiated, and the Plan expressly contemplates, Exit Facilities that will facilitate the Debtors’ emergence from chapter 11. The Exit Financing Agreements provide for a revolving credit facility in an aggregate maximum credit amount of $750,000,000 subject to an initial Borrowing Base of $325,000,000 and a second lien term loan facility in an aggregate amount of $375,000,000… In light of the Debtors’ proposed confirmation schedule, it is critical that the Arrangers begin syndication and arrangement of the Exit Facilities as soon as possible, but no later than November 28, 2018, to ensure the Exit Facilities can be finalized in time for the Debtors to emerge in December 2018.”
Separately, the Court also gave the Debtors permission to (i) file related fee letters (the “Fee Letters”) under seal and (ii) redact the commitment letter (the “Commitment Letter”) and engagement letter (the “Engagement Letter”) [Docket No. 1282]. As previously reported [Docket No. 1274], “The Fee Letters and certain terms of the Commitment Letter and Engagement Letter are subject to confidentiality provisions set forth in the Exit Financing Agreements. The Fee Letters, Commitment Letter, and Engagement Letter contain sensitive and confidential commercial information regarding the structure and amount of certain of the fees relating to the Exit Facilities (the ‘Confidential Information’). Because the disclosure of the Confidential Information could harm the Debtors and the Commitment Parties, the Debtors seek authority to file the Fee Letters under seal, and redact the Commitment Letter and Engagement Letter…. Additionally, disclosing the Confidential Information would put great pressure on the ability of the Commitment Parties to effectively market and syndicate the Exit Facilities. Indeed, such disclosure could increase the aggregate cost of the Exit Facilities to the Debtors’ estates.”
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