EaglePicher interim DIP amendment approved

By Caroline Salls

Pittsburgh, July 29 - EaglePicher Holdings, Inc. obtained approval of a fourth amendment to its interim debtor-in-possession credit agreement, which increases the originally requested commitment by $15 million and extends the term, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

A $50 million interim DIP facility through Harris Trust and Savings Bank was approved April 11 and has since been extended, with the latest extension allowing the interim financing through Aug. 10.

The new facility is for $65 million and is set to expire on Aug. 1, 2006.

Also, interest on the financing has been reduced to Prime rate plus 100 basis points from Prime rate plus 300 basis points.

EaglePicher is required to pay a $100,000 commitment fee, plus an additional $25,000 for each month the DIP is in effect, increasing to $50,000 per month on Jan. 1, 2006.

Also, the company must pay a $50,000 DIP agent fee.

Under the agreement, the company must seek refinancing of all post- and pre-bankruptcy obligations that provides sufficient funds to repay them in full by Oct. 31.

If EaglePicher has not accepted a financing commitment by Oct. 3, it is required to start the process for the sale of all of its assets. If a commitment has been accepted by Oct. 3, but the obligations are not paid by Oct. 31, the company must also start the asset sale process.

A final hearing on the DIP is scheduled for Aug. 23.

EaglePicher, a Phoenix-based diversified manufacturer, filed for Chapter 11 on April 11. Its case number is 05-12601.

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