Vendor Payment Motions Approved
The judge overseeing Diamond Glass' bankruptcy case in the District
of Delaware approved two motions involving payments to its vendors
In one of the motions, the court granted the company authorization
to pay certain critical vendors and freight carriers at a cap of
$6 million. This motion previously was granted on an interim basis,
but this order grants it on a final basis.
Judge Christopher Sontchi also approved Diamond's motion for authorization
to pay certain prepetition claims of suppliers and vendors of goods
"entitled to administrative priority."
The terms of the payments are as follows, according to court documents:
- "Priority Vendors shall have administrative expense claims
for those undisputed obligations arising
from shipments of Goods delivered, received and accepted by the
Debtors in the ordinary course of business within the 20 days
before the Petition date;"
- "The Debtors are authorized, but not directed, to pay,
in the ordinary course, their undisputed obligations to Priority
Vendors who have an administrative expense claim with prority
for those undisputed obligations arising from shipments
of Goods delivered, received and accepted by the Debtors in the
ordinary course of business within the 20 days before the Petition
Date in an amount not to exceed $3.0 million;" and
- "The Debtors are authorized, but not directed, to undertake
appropriate effforts to cause Priority Vendors to enter into agreements
with the Debtors as a condition of payment of each such Priority
Vendor's Priority Vendor Claims
The order also authorizes Diamond to make payments on account of
a priority vendor claim "if the Debtors determine, in their
business judgment, that failure to pay such Priority Vendor Claim
is likely to result in irreparable harm to the Debtor's business
operations." In court cases such as this one, the list of critical
vendors often is considered proprietary and is not released. So
far, it has not been made available publicly in the Diamond case.
HERE for full text of order.
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