Emerald Oil granted final approval of $130 million in DIP financing

By Caroline Salls

Pittsburgh, May 6 – Emerald Oil, Inc. was granted final court approval to obtain $129.93 million in debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The facility is comprised of $20 million of new financing and a $109.93 million pre-bankruptcy credit facility rollup.

The DIP financing will mature at 5 p.m. ET on Sept. 22.

Interest will be the alternate Base rate plus 800 basis points for Base rate loans and Libor plus 900 bps for eurodollar loans.

Under the DIP agreement, Emerald must file a motion to approve an asset sale and related bid procedures by May 20, must conduct an auction by July 11, must obtain approval of an asset sale by July 15 and must close the sale by July 22.

Emerald Oil, a Denver-based oil exploration and production company, filed bankruptcy on March 22. The Chapter 11 case number is 16-10704.

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