Applied Solar Inc., which filed for bankruptcy late last month, says it has obtained a secured, superpriority debtor-in-possession (DIP) financing facility from The Quercus Trust.
The DIP financing provides the company with working capital that the company estimates will be sufficient to take it through its bankruptcy proceeding, which is currently pending in Delaware bankruptcy court. The DIP financing has received approval on an interim basis by the Delaware bankruptcy court and is subject to final approval in the coming weeks.
In addition, Applied Solar has entered into an asset purchase agreement with Quercus APSO LLC, an affiliate of The Quercus Trust, which provides for the purchase of substantially all of the assets of the company and its wholly owned subsidiary, Solar Communities I LLC, for consideration consisting of the assumption or waiver of certain indebtedness owed by the company to The Quercus Trust, the assumption of certain obligations to third parties, and cash.
The asset purchase agreement is subject to approval of the bankruptcy court and certain other contingencies and conditions.
SOURCE: Applied Solar Inc.
