Wire Company Holdings, which does business as New York Wire, announced it has filed for Chapter 11 in the U.S. District of Delaware bankruptcy court.
According to bankruptcy court documents, Wire Company owes it prepetition secured lender, First Niagara Bank, $12.2 million encompassing a revolver with an outstanding balance of $8.4 million, a term loan with an outstanding balance of $2.2 million, a term loan B with an outstanding balance of $1.1 million and a term loan C with a balance of $500,000 outstanding.
“A reasonably prompt sale of the debtors’ businesses…is essential to not only preserve the underlying value of their operations by providing customers and employees with a clear path forward, but also to maximize the value of the Debtors’ assets for the benefit of the Debtors’ creditors,” the court documents said.
The company is petitioning for about $3.7 million in Chapter 11 financing as part of the filing, consisting of a $2.3 million roll-up loan and a $1.4 million revolver.
Wire Company is seeking court approval for $3.7 million in post-petition financing encompassing a $2.3 million roll-up loan and a $1.4 million revolver, according to bankruptcy court documents.
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[…] continue compensating its employees. According to an ABF Journal report, the financing consists of $2.3 million in roll-up loans and $1.4 million in revolvers. This is particularly important for the company as it plans to emerge from the bankruptcy period as […]