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VPX gets final approval of modified $335 million DIP financing
By Sarah Lizee
Olympia, Wash., Jan. 12 – Vital Pharmaceuticals, Inc., which does business as VPX Sports, received final approval of a $335 million debtor-in-possession financing package, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Florida.
As previously reported, the debtor amended the financing after receiving several objections to its terms.
Since the petition date, negotiations took place between the DIP lenders, the debtors, and other stakeholders, including the official committee of unsecured creditors.
Through those talks, the parties agreed to make significant amendments to the facility, including decreasing the size of the roll-up to $235 million from about $355 million. The $100 million new-money portion of the DIP facility remains.
The amendment also places limitations on the DIP collateral and the assets to which DIP superpriority claims will have recourse.
It also reduces the estate’s liability for the prepetition secured lenders’ adequate protection payments.
Some non-debtor real estate sale proceeds will be turned over to the debtors to compensate the debtors for post-petition intercompany funding.
The committee’s investigation budget was increased under the amendment, and the committee was granted standing to pursue certain lien challenges.
The challenge period was extended for all parties in interest.
The maturity date was also extended to May 24, 2023.
As reported, the financing is from Truist Bank as administrative agent and syndicate lenders.
The DIP facility bears interest at one-month SOFR plus 850 basis points. There is a 2.5% upfront fee on new money only.
The Pembroke Pines, Fla.-based the maker of Bang energy drinks and other products filed Chapter 11 bankruptcy on Oct. 10 under case number 22-17842.
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