Zohar III gets access to $45 million DIP financing via JMB Capital

By Sarah Lizee

Olympia, Wash., Dec. 16 – Zohar III, Corp. secured court approval to access up to $45 million of debtor-in-possession financing from JMB Capital Partners Lending, LLC, according to an order filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

The facility, which is secured by a priming lien on all of the debtors’ assets other than certain litigation claims, consists of up to $25 million of tranche A loans and up to $20 million of tranche B loans.

The loans will bear interest at 7% and will mature on Dec. 31, 2021 at the latest.

The minimum amount to be paid for commitment fees and exit fees is $1 million.

The company also received approval to continue to use the cash collateral of the indenture trustee for its secured parties.

The debtors said they believe that use of cash collateral and access to the DIP facility are critical to ensuring that the debtors are able to pursue a sale or refinancing of their portfolio companies for the benefit of all parties in interest.

Zohar is a Grand Cayman, Cayman Islands-based collateralized debt obligation. The company filed bankruptcy on March 11, 2018 under Chapter 11 case number 18-10512.

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