SiO2 Medical receives approval of amended DIP loan, bid procedures

By Sarah Lizee

Olympia, Wash., April 27 – SiO2 Medical Products, Inc.’s received final approval of an amended $120 million debtor-in-possession financing package and amended bid procedures, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

At a hearing held Wednesday, counsel for the debtor said it had worked with the official committee of unsecured creditors regarding its concerns with the financing and bid procedures, and objections to the motions had been resolved.

As previously reported, the DIP financing is being provided by proposed plan sponsor Oaktree Capital Management LP and consists of a $60 million new money multi-draw term loan and a $60 million rollup of first-lien term loan debt.

The facility bears interest at 14% per annum, in cash in the case of new money loans, and in kind in the case of rollup loans. There is also a 5% facility fee and a 5% exit fee.

A number of changes were made to the DIP financing to provide adequate protection to secured lenders and other parties.

The timeline under the bid procedures was amended so that the bid deadline is now 4 p.m. ET on June 12, an auction is now scheduled for June 15, and a sale hearing will take place by June 22.

The bid procedures were also changed to clarify that bids can be made for the company’s stock or its assets.

The Auburn, Ala.-based company creates and manufactures engineered primary packaging container components for the pharmaceutical and biotechnology industry. The company filed bankruptcy on March 29 under Chapter 11 case number 23-10366.

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