Mountain Express gets interim approval of $114.4 million DIP package

By Sarah Lizee

Olympia, Wash., March 23 – Mountain Express Oil Co. received interim approval of a $114.4 million senior secured super-priority debtor-in-possession financing package via prepetition secured lenders, according to an interim order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, when it filed bankruptcy last week, the company said it was in advanced discussions with the prepetition secured lenders regarding a possible DIP facility, but no agreement had been reached yet.

On March 23, the company filed an emergency motion seeking approval of the DIP package, which consists of a $28.6 million new money term loan and an $85.8 million rollup of prepetition debt.

Following the interim order, the company is allowed to borrow $20 million under the new money term loan.

The remaining amounts, including the rollup, will be made available following a final order.

First Horizon Bank is the administrative agent.

The DIP financing is subject to interest of 10% per annum. There is a 5% facility fee on the new money.

The financing is set to mature in 120 days from the petition date, subject to earlier termination upon the occurrence of some events.

The Alpharetta, Ga.-based fuel distributor filed Chapter 11 bankruptcy on March 18 under case number 23-90147.

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