Genmar Holdings requests court approval of sixth DIP loan amendment

By Caroline Salls

Pittsburgh, April 28 - Genmar Holdings, Inc. requested court approval of a sixth amendment its debtor-in-possession loan, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Minnesota.

According to the motion, the sixth amendment will allow the company to continue winding down its businesses and realizing the greatest value for the principal remaining assets, collecting and paying health claims of former employees and addressing certain core issues in its bankruptcy cases.

Specifically under the amendment, which is still being negotiated with Genmar's secured lenders, the lenders will make advances to Genmar under a revolving facility.

In addition, the termination date of a related stipulation for secured borrowing and adequate protection would be extended to the earlier of June 4, the loan maturity date, the date the company terminates the revolver and the occurrence of an event of default.

Genmar said funds will also be made available to enable it to continue collecting and paying healthcare-related claims of former employees, much of which will be funded by other parties.

A hearing is scheduled for May 12.

Genmar is a Minneapolis-based boat manufacturer that filed for bankruptcy on June 1, 2009. The Chapter 11 case number is 09-43537.

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