Marion Energy to receive DIP financing as part of stipulation with TCS

By Caroline Salls

Pittsburgh, Dec. 24 – Marion Energy Inc. entered a stipulation under which TCS II Funding Solutions, LLC and Castlelake, LP agreed to provide the company with debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Utah.

As previously reported, the court denied Marion’s DIP financing motion to the extent it sought authorization for a priming lien, as well as TCS’ motion for dismissal of the company’s bankruptcy case.

The court also granted TCS limited relief from stay to foreclose on its collateral if it was not sold or refinanced by Marion by June 1, 2015.

According to the stipulation, Marion has been unable to obtain DIP financing from any party other than TCS on any terms other than on a priming lien.

Marion said TCS has now agreed to provide DIP financing.

The terms and conditions of the financing require Marion to hire professionals to assist it with the use of the proposed DIP financing, the management of the TCS collateral pending its sale or possible refinancing and the sale of the TCS collateral.

The amount and financial terms of the proposed DIP financing were not included in Wednesday’s stipulation.

Marion is an Allen, Texas-based natural gas exploration company that filed for bankruptcy Oct. 31. The Chapter 11 case number is 14-31632.

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