Daily News: March 14, 2019

CTI Foods Obtains Interim Approval for $142.5MM in DIP Financing

CTI Foods, a custom foodservice manufacturer supplying U.S. restaurant chains and branded food companies, has received approvals from the U.S. Bankruptcy Court for the District of Delaware for the first-day motions related to the voluntary Chapter 11 petitions filed on March 11, 2019.

Notably, the Court granted CTI interim approval to access up to $142.5 million of its $155 million in debtor-in-possession financing provided by Barclay’s Bank and Wells Fargo.

This financing, combined with access to the cash generated by the company’s ongoing operations, will be available to pay off certain existing indebtedness, meet CTI’s operational needs and continue operating its business as usual.

Additionally, CTI received court approval to, among other things, continue to pay employee wages, provide health and other benefits and pay vendors and manufacturing partners in full for all goods and services provided.

“The court’s approvals of our first day motions are an important step forward in our financial restructuring process that will allow CTI Foods to operate in the normal course,” said Mike Buccheri, CTI president and CEO. “Our commitment and focus going forward is on continuing to provide customers with the custom food solutions and services they expect from CTI.”

Weil, Gotshal & Manges is serving as legal advisor, Centerview Partners as financial advisor and AlixPartners as restructuring advisor to CTI. Davis Polk & Wardwell is serving as legal advisor and Evercore Group as financial advisor to the company’s ad hoc group of lenders.

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Barclay’s, Wells Fargo to Provide $155MM DIP Financing to CTI Foods