Court approves seventeenth amendment to DIP credit agreement, bringing aggregate facility to $83.7 million; plan confirmation deadline set for April 30
Cyprus Mines Corporation, a Chapter 11 debtor before the United States Bankruptcy Court for the District of Delaware, received court authorization on April 21, 2026 to borrow an additional $3,000,000 in debtor-in-possession financing, bringing the total aggregate principal available under its DIP credit facility to $83,672,370. The order, entered by the Honorable Laurie Selber Silverstein, authorizes the seventeenth amendment to the company's Amended and Restated Superpriority Debtor-in-Possession Credit Agreement with lender Cyprus Amax Minerals Company.
Case Background and Business Operations
Cyprus Mines Corporation filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on February 11, 2021, before the United States Bankruptcy Court for the District of Delaware (Case No. 21-10398). The debtor's address is listed as 4340 E. Cotton Center Blvd., Suite 110, Phoenix, Arizona.
The case involves talc-related personal injury litigation. A Tort Claimants' Committee is among the parties bound by the court's financing orders. The case is related to the proceedings of Imerys Talc America, Inc., et al. (Case No. 19-10289 (LSS)), which is pending before the same judge.
DIP Financing History
The debtor and lender, Cyprus Amax Minerals Company, entered into the original Superpriority Debtor-in-Possession Credit Agreement on the same day the Chapter 11 petition was filed in February 2021. The Bankruptcy Court authorized that financing on April 5, 2021.
In June 2022, the parties amended and restated the DIP credit agreement in its entirety. Between September 30, 2022 and February 27, 2026, the borrower and lender entered into sixteen additional amendments to that amended and restated agreement, with the Bankruptcy Court entering authorizing orders as necessary and applicable. The seventeenth amendment was executed as of March 30, 2026 and filed with the court as Exhibit 1 to the order on April 21, 2026 (Doc. 3869-1).
The Seventeenth Amendment: Key Changes
The seventeenth amendment makes three substantive changes to the DIP credit facility:
First, the DIP Loan Commitment Amount is increased to $83,672,370, subject to reductions for any amounts paid by Cyprus Amax Minerals Company pursuant to Sections 7.2, 7.3, or 7.4 of the Cyprus Settlement Agreement, plus any PIK Payment Amounts accrued under the facility. The $3,000,000 increase in new money DIP Loans — defined in the order as "Additional DIP Loans" — brings the facility to this updated ceiling.
Second, the maturity date of the DIP Loans is extended to April 30, 2026, or the earlier of the consummation date or the date on which the DIP Loans are accelerated pursuant to the agreement's default provisions.
Third, Section 8(n) of the agreement — the plan confirmation milestone — is amended and restated to make an event of default contingent on two conditions, either of which, if unmet, triggers default. To avoid default under that section, both (i) Imerys Talc America, Inc. and the debtor must each have filed modified Chapter 11 plans by September 19, 2025 with modifications acceptable to the lender in its sole discretion, and (ii) orders confirming (or recommending confirmation of) an Acceptable Plan for the debtor and the modified plan filed by Imerys Talc America, Inc. must be entered by the Bankruptcy Court on or before April 30, 2026.
The maturity date extension and plan confirmation milestone amendments became effective immediately upon execution by the parties on March 30, 2026, while the increase to the DIP Loan Commitment Amount became effective only upon entry of the court's order on April 21, 2026.
Court Findings and Legal Basis
The court found that Cyprus Mines Corporation has an immediate need to obtain the additional DIP Loans to pay administrative costs of its Chapter 11 case, and that access to sufficient working capital and liquidity through the incurrence of new indebtedness is necessary and vital to the preservation and maintenance of the debtor's estate.
The court further found that the financing from Cyprus Amax Minerals Company represents the best and only available financing option for the debtor under the circumstances, and that the debtor is unable to obtain financing on more favorable terms from any other source, or to obtain adequate unsecured credit absent the superpriority administrative expense status conferred by the order.
The terms of the amendment were found to reflect the debtor's exercise of prudent business judgment consistent with its fiduciary duties, and to constitute reasonably equivalent value and fair consideration. The court found the amendment was negotiated in good faith and at arm's length between the parties.
The Additional DIP Loans are granted superpriority administrative expense claim status under section 364(c)(1) of the Bankruptcy Code, ranking pari passu in right of payment and security with the original DIP Loans, and subject only to the Carveout as defined in the original DIP Order. Cyprus Amax Minerals Company is entitled to the full protections of section 364(e) of the Bankruptcy Code in the event the order is vacated, reversed, or modified on appeal.
Talc Litigation Protections
The seventeenth amendment reaffirms that an event of default occurs under the credit agreement if a bankruptcy court order staying, temporarily restraining, or preliminarily enjoining all persons from commencing or continuing any action against the lender relating to any Talc Personal Injury Claim ceases to be in full force and effect — whether in this Chapter 11 case or in the related Imerys Talc America proceedings.
Effectiveness and Binding Effect
The court's order is immediately effective and enforceable upon entry, with all applicable stay periods under the Bankruptcy Rules and Federal Rules of Civil Procedure expressly waived. The order is binding on all parties in interest in the case, including Cyprus Amax Minerals Company, the Tort Claimants' Committee, any statutory or non-statutory committees, the debtor, and their respective successors and assigns — including any subsequently appointed chapter 7 or chapter 11 trustee, examiner, or other fiduciary appointed as a legal representative of the debtor.
The court retains jurisdiction to implement, interpret, and enforce the provisions of the order, with that retention of jurisdiction surviving the confirmation and consummation of any chapter 11 plan.
Key Deadlines
April 30, 2026: Extended maturity date for the DIP Loans; deadline for entry of orders confirming (or recommending confirmation of) an acceptable chapter 11 plan for both Cyprus Mines Corporation and Imerys Talc America, Inc.
Case and Court Information
The case is captioned In re: Cyprus Mines Corporation, Case No. 21-10398 (LSS), pending before the United States Bankruptcy Court for the District of Delaware, before the Honorable Laurie Selber Silverstein. The order at issue is Docket Item 3869, filed April 21, 2026. The seventeenth amendment is filed as Exhibit 1 to that docket entry (Doc. 3869-1). No law firm representation is identified in the court order or amendment documents.
This article was prepared using Research Suite by Stretto, the gold standard for bankruptcy research. Research Suite by Stretto was able to create this summary of a 19-page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Research Suite by Stretto may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.