Volunteer Energy committee raises some concerns over DIP loan

By Sarah Lizee

Olympia, Wash., April 22 – Volunteer Energy Services Inc.’s proposed $5 million debtor-in-possession facility with PNC Bank, NA as lender drew a limited objection Thursday from the official committee of unsecured creditors, according to a filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

The committee said it is working with the debtor and the prepetition ABL secured parties to reach a consensual final order on the post-petition financing.

“The key issues for the committee on a final order are adequate financing; an adequate budget; adequate, but not overreaching, protection; an adequate carveout for the committee; limits on the collateralization related to avoidance actions; reasonable events of default; adequate notice of any event of default; and an adequate challenge period that enables the committee to fully explore challenges,” the group said in its limited objection.

The committee said the final order should only be entered if those issues are addressed.

As previously reported, interest on the facility is a base rate plus 500 basis points.

A final hearing is scheduled for April 25.

The Pickerington, Ohio-based retail energy provider filed Chapter 11 bankruptcy on March 25 under case number 22-50804.

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