The US Bankruptcy Court gave an order to DocuData Solutions, L.C. to obtain DIP financing on an interim basis on March 4, 2025. As per the order, the debtor has been authorized to obtain a new money term loan facility in the amount of $75 million (out of total aggregate $185 million) from Certain April 2026 Noteholders with Ankura Trust Company, LLC acting as the administrative agent. The DIP loan would carry an interest rate of 12% per annum, along with an additional 2% p.a. interest in the event of default.
As per the terms of the DIP agreement, the loan carries a backstop fee of 5% p.a. and 5% of upfront fee paid in kind on the closing date. The DIP facility would mature either on July 1, 2025, or 35 days after the petition date, or upon certain events like the conversion or dismissal of the chapter 11 cases, asset sale or acceleration of the loans. whichever is earlier.
Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $1.25 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.
