The U.S. Bankruptcy Court granted, on an interim basis, Gibson Brand’s first-day motions, including an authorization for $135 million of debtor-in-possession (DIP) financing. Cortland Capital Markets will be administrative agent for the financing.
The court also approved the use of the company’s existing cash management systems and bank accounts, allowing the company to issue payments and honor any outstanding checks, and to pay key trade vendors that sign a vendor support agreement.
“Today’s approval of our first-day motions is encouraging and puts Gibson on a strong footing as we move forward with our reorganization with the support of a majority of our noteholders,” said Henry Juszkiewicz, chairman and CEO of Gibson Brands.
According to a filing with the court, the DIP facility will initially be funded and backstopped by the members of an ad hoc group of pre-petition secured noteholders holding more than 69% of the principal amount of the $375 million of pre-petition secured notes outstanding.
