Examples of Prepetition Term Loan Facility in a sentence
On the Effective Date, subject to entry of the Final DIP Order approving the DIP Term Loan Roll-up Claims, the Prepetition Term Loan Claims shall be deemed Allowed in the aggregate principal amount of $90,068,705.10, plus all interest (including any payment-in-kind interest), fees, and other expenses payable under the Prepetition Term Loan Agreement related to the Prepetition Term Loan Facility.
Despite the December 2016 cost-cutting initiatives described below, incremental amendments to the Prepetition ABL Facility and the Prepetition Term Loan Facility, and implementation of the Back-to- Basics Strategy, the Debtors faced a liquidity crisis in the summer of 2017 following sustained market conditions and operational losses.
Obligations under the Prepetition Term Loan Facility are secured by an all assets lien, including, without limitation, a second priority lien on the Debtors’ accounts (including receivables), inventory, deposit accounts, security accounts, cash, and cash equivalents and a first priority lien on certain other property of the Debtors, including, without limitation, the Debtors’ intellectual property and all equity interests of the Debtors and their subsidiaries (collectively, the “Term Loan Collateral”).
As described herein, the Debtors’ prepetition capital structure contains two tranches of first lien secured debt: (a) the Prepetition ABL Facility (issued under the Prepetition ABL Agreement) and (b) the Prepetition Term Loans (issued under the Prepetition Term Loan Facility).
The Prepetition Term Loan Facility provides for a loan in an original principal amount of $150 million, with a maturity date of December 24, 2019.