Dixie Electric interim financing OK’d; plan hearing set for Dec. 13

By Caroline Salls

Pittsburgh, Nov. 5 – Dixie Electric, LLC obtained court approval to access $15 million of a proposed $17.5 million debtor-in-possession facility on an interim basis, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Dec. 13.

The DIP financing lenders include Contrarian Capital Management, LLC, ING Capital LLC, Mudrick Capital Management LP, Bank of America, NA, Par-Four Investment Management, LLC and Partners Group Private Markets Credit Strategies SA.

The facility will terminate on the earliest of earliest of three months after the bankruptcy filing date, the plan effective date, the completion of a sale of all or substantially all of the loan parties’ assets, acceleration of the facility and 40 days after entry of the interim order if a final order has not been entered.

Interest will accrue at a rate of Libor plus 1,000 basis points.

In addition, the court scheduled the combined hearing on confirmation of its pre-packaged plan of reorganization and approval of the related disclosure statement for Dec. 13.

Dixie, an Odessa, Texas-based provider of electrical infrastructure materials and services to the upstream oil and gas sector, filed bankruptcy on Nov. 2. The Chapter 11 case number is 18-12477.

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