Murray Metallurgical seeks $11.4 million in additional DIP financing

By Caroline Salls

Pittsburgh, May 28 – Murray Metallurgical Coal Holdings, LLC requested court approval of an amendment to its debtor-in-possession financing agreement that would increase the senior DIP facility commitment by $11.4 million, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Ohio.

With the commitment increase and payment of a 4% upfront premium to the senior DIP facility lenders, the company said the new loan amount will be $64.82 million.

The upfront premium will be payable in-kind.

According to the motion, the additional financing will be used by Murray Metallurgical to complete capital projects and environmental work at its Oak Grove Mining Complex that are necessary to avoid product delays or business interruptions that could impact or delay the closing of the sale of the Oak Grove assets.

Also under the proposed amendment, as additional consideration under the stalking horse purchase agreement for the Oak Grove assets, the stalking horse bidder will provide additional new first-lien facility loans in a total original principal amount equal to the principal amount of senior DIP loan obligations in connection with the additional commitment amount and upfront premium.

Murray Metallurgical is based in St. Clairsville, Ohio. The company filed bankruptcy on Feb. 11 under Chapter 11 case number 20-10390.

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