Mississippi Phosphates can borrow $500,000 more under DIP financing

By Caroline Salls

Pittsburgh, March 30 – Mississippi Phosphates Corp. can borrow an additional $500,000 under a second amended interim debtor-in-possession financing term sheet, according to a notice filed Monday with the U.S. Bankruptcy Court for the Southern District of Mississippi.

The company said an initial $250,000 advance will be available from the second business day after the filing of the notice through the date of entry of the final DIP financing order.

A subsequent $250,000 advance will be available from the second business day after receipt of an acceptable counter offer from the United States and the Mississippi Department of Environmental Quality to a settlement offer from the DIP lenders through the date of entry of the final DIP financing order.

The additional financing will be used to fund administrative and operational costs of the company’s Chapter 11 cases.

The DIP financing will mature on April 20.

Mississippi Phosphates, a Pascagoula, Miss.-based fertilizer company, filed for bankruptcy on Oct. 27. The Chapter 11 case number is 14-51667.

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