Mountain Express seeks OK to increase DIP loan by $9.05 million

By Sarah Lizee

Olympia, Wash., July 18 – Mountain Express Oil Co. is seeking approval of an amendment that would increase its debtor-in-possession financing package by $9.05 million, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The DIP financing currently consists of a $123.65 million senior secured super-priority facility via prepetition secured lenders. The DIP financing includes $37.85 million in new money, in addition to an $85.8 million rollup, which became fully available following the final order.

The amendment would increase the new money under the DIP financing to $46.9 million through July 28.

The company said it expects that more financing will be required after that, which will be the subject of separate motions.

First Horizon Bank is the administrative agent.

The DIP financing is subject to interest of 11% per annum, up from 10% initially. There is a 5% facility fee on the new money.

The financing is set to mature in 120 days from the petition date, subject to earlier termination upon the occurrence of some events.

The Alpharetta, Ga.-based fuel distributor filed Chapter 11 bankruptcy on March 18 under case number 23-90147.

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