Debtor-in-Possession Motion Granted
The U.S. Bankruptcy Court for the District of Delaware has granted
Kingston, Pa.-based Diamond Glass's motion that it be allowed to
act under a "Debtor-in-Possession" (DIP) agreement with
Guggenheim Corporate Funding LLC during the period of reorganization
under Chapter 11. (CLICK
HERE for related story.)
The court authorized Diamond to borrow up to $3.1 million under
the Revolving Loan Commitment during the interim period "in
accordance with the Budget and subject to the conditions in the
DIP Credit Agreement."
In a separate ruling, the court also granted Diamond's motion authorizing
the company "to pay the prepetition claims of certain critical
vendors and service providers." The payments will be made "in
[Diamond's] sole discretion, and in the reasonable exercise of their
"We are extremely pleased with the Court's rulings yesterday,"
says Diamond president Bill Cogswell in a press release issued late
this afternoon. "With approval of our new financing and cash
receipts from continuing operations, we have more than sufficient
resources and liquidity to continue operating as normal during our
chapter 11 case. Our employees, our suppliers, our customers and
everyone else who deals with us should see no difference in our
for full text of the court document regarding DIP agreement.
HERE for the full text of the court document regarding vendor
HERE for the full text of the press release from Diamond.
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