This hearing had a lengthy agenda planned, but ended up covering almost exclusively the new DIP.
Given the fact that the DIP money refinance HAD to occur today, Judge Bernstein was extremely annoyed over the lack of preparation among counsels. After 3 hours of frustrating back-and-forth which did not resolve the Unsecured Creditors’ issues concerning the DIP refi, the Court told the parties to take a recess, go out into the hall, and work it out.
Ten minutes later – and after 3 hours of near-pointless arguing – the issue was resolved. The new DIP was approved, pending the amendment requested by the UCC. Thus, the Chapter 11 was preserved.
However, that left no time for anything else, including any significant update of the Yieldcos deals. The mediation had begun, with the mediator meeting with separate parties this week, and then expected to bring parties together for discussions over the next two weeks.
Of note: during this hearing, Judge Bernstein acknowledged that these cases may have been set up to favor the Senior Creditors. Well, we know this to be true already, but it was heartening to hear the Court acknowledge that!
It inspires us to keep moving ahead. We need all the support and shareholders possible. Please join and contribute!