SP Newsprint receives 90-day extension of its $25 million DIP facility

By Jim Witters

Wilmington, Del., June 1 - SP Newsprint Holdings LLC received approval for a 90-day extension of its $25 million debtor-in-possession financing facility, according to documents filed June 1 with the U.S. Bankruptcy Court for the District of Delaware.

The approval extends the termination of the DIP facility to Sept. 17 from June 19.

"The primary need (which at the same time serves as justification) for the proposed amendment to the DIP loan agreement is that the debtors' sales process has taken longer than expected, and without the DIP loan agreement amendment, the debtors could soon be in default under the DIP loan agreement," the debtors stated in seeking the extension.

DIP terms

As previously reported, SP Newsprint received final approval for its DIP financing on Jan. 25.

General Electric Capital Corp. is the agent.

Interest will be Base rate plus 650 basis points for Base rate loans and Eurodollar plus 750 bps for Eurodollar loans, according to court documents.

SP Newsprint, a Greenwich, Conn.-based newsprint producer, filed for bankruptcy on Nov. 15, 2011. Its Chapter 11 case number is 11-13649.

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