Ormet Corp. (ORMTQ)

[Value_Investor]

News on 08/23/2013: Ormet Interim Financing Approved

The U.S. Bankruptcy Court granted interim approval to Ormet's motion to enter into an amendment to the term loan D.I.P. credit agreement and related agreements. As previously reported, "The DIP Amendment would provide up to $10 million in funding under the Term Loan DIP Credit Agreement (the 'Supplemental DIP Financing'), subject to certain closing conditions. Specifically, the DIP Amendment provides for the following...the Term Loan DIP Credit Agreement to provide for up to a total delayed draw term loan of $25,000,000, of which $10,000,000 constitutes the Supplemental DIP Financing. In consideration of the Supplemental DIP Financing and entering into the D.I.P. Amendment, the release of the DIP Term Loan Agent, the DIP Term Loan Secured Parties and certain parties related to each of the foregoing by each Borrower and each Obligor. As conditions precedent to the effectiveness of the DIP Amendment: (i) that there shall have been entered into an amendment to (a) the Revolving Loan DIP Credit Agreement and (b) the Intercreditor Agreement, each in form and substance satisfactory to the DIP Term Loan Secured Parties, permitting the incurrence of the Supplemental DIP Financing under the Term Loan DIP Credit Agreement, and (ii) an agreement by the Revolving Loan Secured Parties to make available not less than $4 million of additional liquidity under the Revolving Loan DIP Credit Agreement by removing or modifying certain blocks and/or reserves thereunder." The Court scheduled a September 18, 2013 hearing to consider entry of a final order.