Blue Torch Finance boldly stepped forward, offering a $100 million stalking horse credit bid for an auction set for early November. Their proposal for a DIP package totalling $22.7 million in fresh capital and a roll-up of $97.2 million in first-lien debt seemed poised to reign supreme.
However, the Credit Suisse Mexico Opportunities Fund, holding interests in two trusts laden with $13.1 million in second-lien debt, raised the stakes by arguing that the DIP arrangement would contravene a senior-junior lender agreement that imposes a cap on how much second-lien debt can be subordinated behind DIP financing in a bankruptcy scenario.
At a hearing just a fortnight ago, Blue Torch made a strategic maneuver by agreeing to excise the first-lien rollup from their package. Judge Stickles concurred, allowing a bridge financing agreement while the parties engaged in a consensual interim DIP order.
Agreements on the Horizon: A Thrilling Turn of Events
In a dramatic courtroom crescendo at Wednesday’s hearing, AgileThought counsel Jeremy Ryan announced that AgileThought, Blue Torch, Credit Suisse, and the unsecured creditors’ committee had orchestrated an agreement regarding the interim order. Optimism rippled through the courtroom as Ryan declared that the final DIP motion could evolve into a fully consensual decision.
