Wednesday, May 7, 2014

James River Coal DIP Loan Approved With Tweaks


"According to the amended final DIP order entered by the Richmond, Va., bankruptcy court, the prepayment penalty on the mandatory $20 million amortization was reduced to 0.25%, although the prepayment penalty remained at 1% for the remainder of the facility.

The committee had also complained that the DIP facility restricted its ability to challenge the validity of the company’s liens under its revolving credit facility, which has about $64.7 million outstanding in letters of credit. Under the DIP order reflecting the company’s resolution with the creditor panel, the committee will have until June 16 to file an adversary action or other proceeding challenging the liens."

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