Essar Steel Minnesota seeks court OK of $35 million DIP facility

By Caroline Salls

Pittsburgh, July 20 – Essar Steel Minnesota LLC requested court approval to obtain up to $35 million in debtor-in-possession financing, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

SPL Advisors LLC affiliate Strategic Partners Holdings Ltd. is the DIP lender.

A total of $7 million of the financing will be made available on an interim basis, $7 million will be made available after entry of the final order, and the balance will be available in multiple draws thereafter.

The financing will be used for working capital and general corporate purposes, as well as to pay the costs of administration of Essar’s Chapter 11 case.

The facility will mature on March 31, 2017.

Interest will accrue at a rate of 15%.

A hearing is scheduled for July 26.

The iron ore producer is based in Hibbing, Minn., and is part of India-based Essar Group. The company filed bankruptcy on July 8 under Chapter 11 case number 16-11626.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.