No DIP financing needed.
The Debtor has access to cash on deposit to pay expenses to complete the liquidation. Since there is no true ongoing operations, no need for additional funding.
Back to the cash. The majority of the cash was generated when the Servicing Portfolio was sold. Select Portfolio Servicing, Inc. paid $79.3 million. SPS also reimbursed the Trustee $16.9 million for net unreimbursed advances.
Credit Suisse has a security interest in 95 percent of the purchase price (subject to certain adjustments for sales costs and accrued interest). The adjusted amount was about $74.8 million at the end of May.
The Court found that the Debtor can retain 5 percent of the sales proceeds and the advance repayments. This amount was $20.8 million.
The Trustee is currently trying to recover "necessary costs and expenses" that relate to the creating the benefit for the secured claim holder, subject to Section 506(c). The Encumbered Amount is $3.3 million, of which $1.1 million would be immediately paid to the Debtor and the balance of $2.2 million would be held in escrow pending the Court's determination of the Trustee's commission down the road.
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
