Amendment No. 1 to Cash Collateral Pledge Agreement among The Renco Group, Inc., Congress Financial Corporation (as Agent), The CIT Group/Business Credit, Inc. (as Co-Agent), Lodestar Energy, Inc., and Lodestar Holdings, Inc.
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This amendment updates the Cash Collateral Pledge Agreement between The Renco Group, Inc., Congress Financial Corporation (as Agent), The CIT Group/Business Credit, Inc. (as Co-Agent), Lodestar Energy, Inc., and Lodestar Holdings, Inc. The amendment increases the required cash collateral from $5 million to $6 million and extends the collateral period from four to five months. The Renco Group will provide the additional collateral to support loans to Lodestar Energy. All parties confirm their authority to enter into this amendment, which is governed by New York law and is binding on their successors and assigns.
EX-10.161 6 a2025735zex-10_161.txt EX-10.6.1 EXHIBIT 10.16.1 AMENDMENT NO. 1 TO CASH COLLATERAL PLEDGE AGREEMENT THE RENCO GROUP, INC. 30 Rockefeller Plaza New York, New York 10112 as of August 1, 2000 Congress Financial Corporation, as Agent 1133 Avenue of the Americas New York, New York 10036 Gentlemen: Lodestar Energy, Inc., a Delaware corporation ("Borrower"), has entered into financing arrangements with Congress Financial Corporation, a Delaware corporation in its capacity as Agent pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf of the financial institutions which are from time to time parties thereto as lenders (in such capacity, "Agent"), The CIT Group/Business Credit, Inc. in its capacity as co-agent for the financial institutions which are from time to time parties thereto as lenders ("Co-Agent") and the financial institutions which are parties to the Loan Agreement as lenders (individually, a "Lender", and collectively, "Lenders") pursuant to which Agent and Lenders may make loans and advances and provide other financial accommodations to Borrower as set forth in the Amended and Restated Loan and Security Agreement, dated May 15, 1998, by and among Borrower, Lodestar Holdings, Inc., a Delaware corporation ("Guarantor"), Agent, Co-Agent and Lenders, as amended pursuant to Amendment No. 1 to Amended and Restated Loan and Security Agreement, dated October 22, 1998, Amendment No. 2 to Amended and Restated Loan and Security Agreement, dated December 21, 1998, Amendment No. 3 to Amended and Restated Loan and Security Agreement, dated January 15, 1999, Amendment No. 4 to Amended and Restated Loan and Security Agreement, dated April 30, 1999, Amendment No. 5 to Amended and Restated Loan and Security Agreement, dated July 16, 1999, Amendment No. 6 to Amended and Restated Loan and Security Agreement, dated November 15, 1999, and Amendment No. 7 to Amended and Restated Loan and Security Agreement, dated March 10, 2000 (as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the "Loan Agreement"), and other agreements, documents and instruments referred to therein or at any time executed and/or delivered in connection therewith or related thereto, including, but not limited to, this letter agreement (all of the foregoing, together with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, being collectively referred to herein as the "Financing Agreements"). All capitalized terms used herein, unless otherwise defined herein, shall have the meanings given to such terms in the Loan Agreement. The Renco Group., Inc., a New York corporation ("Renco Group") has agreed to make subordinated loans from time to time upon the request of Agent under certain circumstances as set forth in the letter agreement, dated November 15, 1999, by and among Renco Group, Agent, Co-Agent, Borrower and Guarantor, as amended pursuant to Amendment No. 1 to Subordinated Loan Letter, dated March 10, 2000 (as the same has been amended and may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the "Subordinated Loan Letter"). Renco Group has also agreed to provide cash collateral to Agent in order to induce Lenders to make certain additional loans available to Borrower as set forth in the Cash Collateral Pledge Agreement, dated March 10, 2000, by Renco Group in favor of Agent (as the same is hereby amended and may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the "Renco Group Cash Collateral Agreement"). Renco Group and Borrower have requested that Agent, Co-Agent and Lenders agree to amend the Renco Group Cash Collateral Agreement in order to permit Renco Group to remit an additional $1,000,000 in Renco Group Cash Collateral to Agent on August 1, 2000. Agent, Co-Agent and Lenders are willing to agree to such amendment, subject to the terms and conditions contained herein. In consideration of the foregoing and the other terms and conditions contained herein and in the other Financing Agreements, the parties hereto agree as follows: 1 1. The reference to "four (4) months" in Section 1 of the Renco Group Cash Collateral Agreement shall be deleted and replaced with "five (5) months" and each reference to the figure "$5,000,000" in Section 1 of the Renco Group Cash Collateral Agreement is hereby deleted and each such reference is hereby replaced with the figure: "$6,000,000". 2. Renco Group, Borrower and Guarantor represent and warrant to Agent and Lenders that: (a) the execution, delivery and performance of this amendment to the Renco Group Cash Collateral Agreement is within the corporate powers of Renco Group, Borrower and Guarantor, has been duly authorized by all necessary corporate action of Renco Group, Borrower and Guarantor, and does not contravene any law, any provisions of the certificate of incorporation or the by-laws of Renco Group, Borrower or Guarantor or any agreement to which Renco Group, Borrower or Guarantor is a party or by which it or its properties are bound, and (b) this amendment to the Renco Group Cash Collateral Agreement constitutes the legal, valid and binding obligations of Renco Group, Borrower and Guarantor, enforceable in accordance with its terms. 3. The rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in accordance within the laws of the State of New York (without giving effect to principles of conflict of law). 4. This amendment to the Renco Group Cash Collateral Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. All references to any party hereto shall be deemed to include such party and its successors and assigns. 5. This amendment to the Renco Group Cash Collateral Agreement may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. In making proof of this agreement it shall not be necessary to produce or to account for more than one counterpart thereof signed by each of the parties hereto. Upon the execution of this amendment to the Renco Group Cash Collateral Agreement by Agent, this amendment shall become a binding agreement by and among Renco Group, Borrower and Agent. Very truly yours, THE RENCO GROUP, INC. By: /s/ John Siegel, Jr. --------------------- Title: /s/ Vice President -------------------- AGREED: CONGRESS FINANCIAL CORPORATION, as Agent By: /s/ Thomas Martin ------------------ Title: /s/ Assistant Vice President ---------------------------- THE CIT GROUP/BUSINESS CREDIT, INC., as Co-Agent By: /s/ Steve Schuit ----------------- Title: /s/ Assistant Vice President -----------------------------
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