Marco Polo Seatrade OK'd to access $4.8 million of DIP financing despite creditor objection

By Lisa Kerner

Charlotte, N.C., Sept. 15 - Marco Polo Seatrade BV was granted approval Thursday by the U.S. Bankruptcy Court for the Southern District of New York to obtain up to $4.8 million of debtor-in-possession financing, according to an attorney familiar with the case.

The financing will be provided by non-debtor joint venture Futmarine BV, which is 50% owned by Marco Polo Seatrade.

The facility will mature on the earliest of Aug. 1, 2012, the effective date of a plan of reorganization, conversion of the bankruptcy case or appointment of a trustee and termination of the company's exclusivity.

Interest will be 5%.

The company was seeking interim access to $2.4 million of the financing.

As previously reported, Marco Polo Seatrade said that the financing is needed to capitalize on business opportunities that will drive a successful restructuring and to prevent future business loss.

Secured creditor the Royal Bank of Scotland objected to the proposed financing, calling the company's DIP motion "a transparent attempt" by the debtors and their insider lender "to hijack the bankruptcy process for the benefit of their out-of-the-money equity holder," a prior court filing said.

Marco Polo Seatrade, an Amsterdam-based vessel owner, filed for bankruptcy on July 29. The Chapter 11 case number is 11-13634.

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