The U.S. Bankruptcy Court for the District of Delaware approved all of Shiloh Industries’ “first day” motions related to its voluntary Chapter 11 petitions filed on Aug. 30.

The court granted Shiloh Industries interim approval to access up to $18.1 million of the $123.5 million in committed debtor-in-possession financing from its existing lenders, consisting of an approximately $23.5 million new money subfacility and a roll-up of approximately $100 million of commitments under Shiloh Industries’ existing revolving credit facility, which, combined with cash generated from the company’s ongoing operations, will be used to support the business throughout the sale process. Among other things, the court authorized Shiloh Industries to continue to pay employee wages and benefits without interruption, honor customer commitments and otherwise manage its day-to-day operations in the ordinary course through the court-supervised sale process.

“We are pleased to have received the court authorization we need to continue our operations during the sale process,” Cloyd J. Abruzzo, interim CEO of Shiloh Industries, said. “As we move through this process, we look forward to continuing to serve our customers and meet their needs as the automotive industry recovers from the COVID-19 pandemic. I would also like to thank our employees for their continued dedication to our company.”

As previously reported, Grouper Holdings, a subsidiary of MiddleGround Capital, entered into a stalking horse stock and asset purchase agreement with Shiloh Industries to acquire substantially all of the company’s assets.

Shiloh Industries intends to pay its suppliers in full under normal terms for goods and services provided on or after Aug. 30. The company also intends to work with its suppliers to minimize any disruption resulting from the Chapter 11 filing.

Jones Day is serving as legal counsel, Houlihan Lokey Capital is serving as financial advisor and Ernst & Young is serving as restructuring advisor to Shiloh Industries.

Shiloh Industries is an environmentally-focused global supplier of lightweighting, noise and vibration solutions.