By Dawn McCarty
Green Field Energy Services Inc., the oil-field service provider that defaulted on a loan last month, received court approval to borrow as much as $15 million, allowing the company to operate while it’s in bankruptcy.
U.S. Bankruptcy Judge Kevin Gross approved the financing today in Wilmington, Delaware. The company, which filed for bankruptcy Oct. 27, will return to court to seek approval of the rest of a $30 million debtor-in-possession loan from lenders including GB Credit Partners LLC and ICON Capital LLC.
Green Field, based in Lafayette, Louisiana, listed assets of as much as $500 million and the same amount in liabilities in the Chapter 11 filing in U.S. Bankruptcy Court in Wilmington.
Green Field Energy defaulted on principal payment on a credit facility with an affiliate of Royal Dutch Shell Plc, triggering a cross default on $250 million of senior secured notes, Moody’s Investors Services Inc. said in a Sept. 9 report.
The case is In re Green Field Energy Services Inc. 13-bk- 12783. U.S. Bankruptcy Court, District of Delaware (Wilmington).