ERP Iron Ore seeks approval to obtain $200,000 more in DIP financing

By Caroline Salls

Pittsburgh, Oct. 11 – ERP Iron Ore, LLC requested court approval to obtain an additional $200,000 in financing under its debtor-in-possession credit agreement, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

A total of $2 million in financing was previously provided by ERP affiliate and DIP lender affiliate Merida Natural Resources, LLC.

The company said the additional financing will be used to fund the costs of administration of its bankruptcy case through November, to facilitate the sale of its assets, and to seek confirmation and effectiveness of the Chapter 11 plan set for a Nov. 5 confirmation hearing.

A hearing is scheduled for Oct. 24.

ERP is based in Grand Rapids, Minn. An involuntary case against it was converted to a voluntary case on July 17. The Chapter 11 case number is 18-50378.

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