Did a quick read and the judge has decided with Kry and the monitor again. Kry is borrowing the bridge financing from Tenor who may have been the last minute bid before CCAA protection to supply financing as per Fungs affidavit on Dec. 23rd.
Besides the bridge financing and stay order until march 23rd there was also a change to the CCAA financing procedures. I haven't found out yet if it has to do with the noteholders wanting revisions because they argued they were being excluded or if the change is related to the new bridge financing.
JJ
Here are the nuts and bolts:
BRIDGE FINANCING
3. THIS COURT ORDERS that the Applicant is hereby authorized and empowered to obtain and borrow under a credit facility (the "Bridge Financing") from Tenor Special Situations Fund, L.P. (the "Bridge Lender") in order to finance the Applicant's working capital requirements and other general corporate purposes and capital expenditures, including without limitation in order to continue to manage, prosecute, pursue and pay the fees and disbursements of counsel and experts in connection with the Arbitration Proceedings, pending the consummation of a DIP financing facility as contemplated by the Initial Order, provided that borrowings under such bridge credit facility shall not exceed $3,125,000 unless permitted by further Order of this Court.
4. THIS COURT ORDERS THAT such bridge credit facility shall be on the terms and subject to the conditions set forth in the commitment letter dated January 19, 2012 and the attachments thereto, including the promissory note executed by the Applicant in favour of the Bridge Lender (the "Promissory Note"), filed, which terms and conditions are hereby approved.
STAY EXTENSION
2. THIS COURT ORDERS that the Stay Period in paragraph 16 of the Initial Order of the Honourable Mr. Justice Newbould dated December 13, 2011 (the "Initial Order"), be and hereby is extended to and including March 23, 2012.
I can't find any documents to say what the bridge financing rate is but do know the noteholders had offered a rate of 1% per annum. This is from Carlo Mattoni for the noteholders in his affidavit.
Tenor should have a similiar rate one would think unless there were provisions attached to the noteholders offer.
