2016-04-14_GENERAL DOCUMENTS - C1994082 (2)

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Case 16-42529 Doc 23 Filed 04/13/16 Entered 04/13/16 11:20:44 Main Document Pg 6 of 32 not the obligation, to perform all actions necessary or appropriate to honor the Indemnity Agreements. 13. As of March 31, 2016, in connection with the Third -Party Surety Bonds and the Indemnity Agreements, the Debtors have posted collateral with the applicable Issuers, typically ranging in value from around 30% to 50% of the face amounts of the bonds (although certain issuers have required that the Debtors post no collateral at all or as much as 100% of the face amount of the bonds). In the aggregate, the Debtors have provided collateral in an amount of approximately $190.1 million in support of their Surety Bonds, or approximately 35.3% on average. This collateral is posted, for certain Surety Bonds, in the form of cash, and for others in the form of letters of credit, issued under the Debtors' prepetition secured credit agreement or the Debtors' prepetition accounts receivable securitization facility and cash.4 14. Further, to assist the Debtors in procuring the Third -Party Surety Bonds and managing the Surety Bond Program, the Debtors employ Aon Risk Services Central, Inc. ("Aon"). To compensate Aon for its services related to the Surety Bond Program, the Debtors pay Aon approximately $200,000 in yearly fees (the "Aon Fees"). The Debtors believe that no amounts are owing on the Aon Fees as of the Petition Date. The Debtors' Self-BondingPr�g_es 15. In addition to the Third -Party Surety Bonds, the Debtors also secure their Reclamation Obligations through their Self -Bonding Privileges, which are established by self - A detailed description of the Debtors' accounts receivable securitization program and facility is set forth in the Motion of the Debtors and Debtors in Possession, Pursuant to Sections 105, 362(d), 363(b)(1), 363(f), 363(m), 364(c)(1), 364(c)(2), 364(d), 364(e) and 365 of the Bankruptcy Code for Entry of Interim and Final Orders: (1) Authorizing Certain Debtors to Continue Selling and Contributing Receivables and Related Rights Pursuant to a Securitization Facility; (II) Modifying the Automatic Stay; and (III) Granting Related Relief (the "ARS Motion"), filed contemporaneously herewith.