Erin Energy requests court approval to obtain $1.1 million DIP loan

By Caroline Salls

Pittsburgh, June 15 – Erin Energy Corp. requested emergency court approval to obtain a $1.1 million debtor-in-possession loan, which the company said is vital to the continuation of its businesses, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

Greg Holcombe is the lender.

Erin Energy said the loan will be used to fund payroll and other immediate needs.

Interest will accrue at a rate of 10%, which will be payable in-kind by adding the interest to the outstanding principal balance on each interest payment date.

The DIP loan will mature on the earlier of 180 days after entry of an interim order, the effective date of any Chapter 11 plan, completion of any sale of all or substantially all of the assets of the Erin Energy debtors and termination of the DIP note.

A hearing is scheduled for June 19.

Based in Houston, Erin Energy is an explorer, developer and producer of oil and gas. The company filed bankruptcy on April 25 under Chapter 11 case number 18-32106.

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