Fairway Energy granted interim access to $6 million of DIP financing

By Caroline Salls

Pittsburgh, Nov. 29 – Fairway Energy, LP obtained court approval to access $6 million of a proposed $20 million in debtor-in-possession financing from Riverstone Credit Partners-Direct, LP on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Jan. 8.

Interest will accrue at a rate of Libor plus 1,500 basis points.

The DIP facility will mature on the earliest the 150th calendar day after the bankruptcy filing date, 40 days after the filing date if the final order has not been entered by then, the date the court denies approval of the final order, the effective date of a Chapter 11 plan, the closing of a sale of all or substantially all of the company’s assets and the acceleration of the loans and termination of the commitments.

Houston-based Fairway owns and operates an underground crude oil storage facility. The company filed bankruptcy on Nov. 26 under Chapter 11 case number 18-12684.

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