Burgess BioPower gets interim approval of $54 million DIP package

By Sarah Lizee

Olympia, Wash., Feb. 29 – Burgess BioPower, LLC received interim approval of a $54 million senior secured super-priority debtor-in-possession financing package with some of the company’s prepetition noteholders, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The facility consists of $18 million in new-money delayed-draw term loans and a $36 million rollup of prepetition debt.

The company now has access to $4.4 million of the new money and $8.8 million of the rollup.

Deutsche Bank Trust Co. Americas is the administrative agent.

The facility is set to mature in 180 days and bear interest at 12%.

As a reminder, Burgess reached a restructuring support agreement with its senior secured noteholders that provides for ongoing operations of the debtors’ enterprise, aims to pay all trade creditors in full, and provides a path to emergence.

The company’s prepetition capital structure includes $57 million 7% senior secured series A notes due 2031 issued by Berlin Station, $93 million 7˝% senior secured series B notes due 2031 and $50 million senior secured floating-rate notes due 2022. As of the petition date, about $115 million of the notes remain outstanding.

The notes were originally issued and continue to be held by a group of insurance companies including Prudential Insurance Co. of America, Pruco Life Insurance Co., Prudential Legacy Insurance Co. of New Jersey, Pacific Life Insurance Co., Pacific Life & Annuity Co., Aviva Life and Annuity Co. and Royal Neighbors of America.

The notes are secured by a continuing lien and security interest on all current and subsequently acquired real and personal property of the debtors, including the company’s biomass power plant in New Hampshire.

The RSA includes a toggle feature that provides for a sale transaction or a debt-for-equity swap, by which the senior secured noteholders would become the owners of the reorganized debtors.

The Berlin, N.H.-based biomass power plant company filed bankruptcy on Feb. 9 under Chapter 11 case number 24-10235.

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