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New MACH Gen D.I.P. Financing Approved

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The U.S. Bankruptcy Court issued an interim Order approving New MACH Gen’s motion for interim and final orders (i) authorizing Debtors to obtain postpetition financing in the form of a multi-draw term loan facility from Beal Bank USA and Beal Bank, SSB, as initial lenders (the “DIP Lenders”), (ii) authorizing use of cash collateral, (iii) granting liens and super-priority claims, (iv) granting adequate protection to prepetition first lien lenders and (v) scheduling a final hearing.

As previously reported, “The DIP Facility is a senior secured, superpriority, debtor in possession term loan facility in the aggregate principal amount not to exceed $20 million, of which up to $10 million shall be available on an interim basis under the terms of the Interim Order and the other DIP Loan Documents….The Borrower shall pay interest on the unpaid principal amount of each DIP Loan owing to each Lender from the date of such DIP Loan until such principal amount shall be paid in full, at a rate per annum equal at all times during each Interest Period for such DIP Loan to the sum of (A) the Eurodollar Rate for such Interest Period for such DIP Loan plus (B) the Applicable Margin (6% per annum), payable in arrears on each Interest Payment Date. Default interest is rate per annum equal at all times to 2% per annum above the rate per annum required to be paid.”

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