Trinity Coal wins final approval for $15 million DIP revolver, $49.3 million prepetition debt rollup

By Lisa Kerner

Charlotte, N.C., April 2 - Trinity Coal Corp. received final approval to access its $15 million debtor-in-possession financing facility and for the rollup of $49.3 million of prepetion debt, according to an attorney familiar with the case.

The company received interim approval for $5 million of the DIP financing and the rollup, according to a March 6 filing with the U.S. Bankruptcy Court for the Eastern District of Kentucky.

DIP terms

As previously reported, the $15 million DIP will provide operating cash for the Trinity Coal alleged debtors and provide access to letters of credit.

Credit Agricole is the administrative agent for the DIP loan.

Interest will be the base rate plus 800 basis points.

The facility will mature 180 days after a chief restructuring officer is appointed, provided that within 15 days of that date the company can request the maturity date be extended to no later than 270 days from the appointment date.

In addition, the DIP agreement requires the company to file a motion for approval of procedures for the sale of its assets by April 30.

According to the financing motion, the Trinity Coal debtors have consented to conversion of their involuntary bankruptcy cases to voluntary Chapter 11 cases.

Trinity, a Scott Depot, W.Va.-based coal mining company, was brought into involuntary bankruptcy on Feb. 20. The Chapter 11 case number is 13-50364.

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