Daily News: May 12, 2014

BofA Provides DIP Financing for Universal Cooperatives

Universal Cooperatives and its domestic subsidiaries have filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware for the purpose of maximizing value through the sale of ongoing businesses operated by Bridon Cordage and Heritage Trading Company, as well as sales of the assets of their other businesses.

Universal has obtained debtor-in-possession financing from Bank of America, its pre-petition lender in connection with the process. The financing will support operations and enhance continuity for customers, employees and business partners. Non-core assets are expected to be sold in separate transactions.

The operating debtors expect to continue purchasing goods and services from suppliers and to pay suppliers in the normal course for all goods and services delivered on or after today’s filings, while claims for goods and services delivered prior to the filings will be addressed as a part of the Chapter 11 process.

In conjunction with the filing, universal filed first-day motions with the Court to ensure the timely payment of employee wages and benefits, to maintain its operational and cash management functions, and otherwise complete a smooth transition into operating under the protections of Chapter 11.

Universal Cooperatives is an interregional farm supply cooperative providing manufacturing, distribution and purchasing services. Universal is headquartered in Eagan, MN.