Liberty Power seeks court approval to lift and extend DIP facility

By Sarah Lizee

Olympia, Wash., Nov. 24 – Liberty Power Holdings LLC is seeking approval to increase the amounts and extend the maturity date of its $40 million debtor-in-possession facility with pre-petition lender Boston Energy Trading and Marketing, LLC, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Florida.

Specifically, the company is seeking approval to incur $25 million of new debt under the facility, and extend the facility to Feb. 28 from Dec. 1.

The company said it needs access to the funds in order to support its retail energy business while it completes the sale of its assets.

In July 2020, the company and lender executed a supply and service agreement and intercreditor agreement, among other agreements, as previously reported.

Under the DIP facility, to the extent unpaid amounts owed to DIP lender do not constitute deferred supply obligations, interest would accrue at the Treasury bill rate plus 1,200 basis points. Otherwise, interest would accrue at the higher of SOFR plus 1,000 bps or 10% for the first 30 days, and thereafter, the higher of SOFR plus 1,200 bps or 12%.

Liberty Power is an electric retailer based in Fort Lauderdale, Fla. The company filed Chapter 11 bankruptcy on April 20, 2021 under Chapter 11 case number 21-13797.

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