Rockall Energy has final approval for DIP proposal post-objection

Chicago, April 27 – Rockall Energy Holdings, LLC’s motion seeking final approval of a $51 million debtor-in-possession facility has been approved, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The facility had previously drawn an objection from Region 6 U.S. trustee William T. Neary.

A final hearing was held on Wednesday, and the court heard and resolved or overruled all the objections to the requested relief.

As previously reported, the facility consists of $17 million in new-money term loans and $34 million of DIP roll-up obligations.

Goldman Sachs Bank USA is the administrative agent and collateral agent for the DIP loans.

There is a 2% commitment fee on the new money commitment, paid in kind and a $50,000 administrative fee.

At the time of the interim order, term loan claims of around $7.6 million and shell hedge claims of approximately $2.4 million were converted into DIP loans, as interim roll-up obligations.

At the time of the final order, $26 million of term loan claims and $8 million of shell hedge claims have been converted.

Neary’s objection was based on the granting of a superpriority claim of prepetition debt over post-petition debt, including certain unmortgaged Mississippi real estate and Chapter 5 avoidance actions.

The company also has interim access to the cash collateral of its prepetition secured lenders.

Rockall anticipates it will use $20 million of cash collateral.

The Dallas-based oil exploration and production company filed Chapter 11 bankruptcy on March 9 under case number 22-90000.

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