Several
Diamond Motions Approved in Chapter 11 Case
The U.S. Bankruptcy Court for the District of Delaware acted quickly
today to approve several motions made in Diamond Glass Co.'s April
1 filing for voluntary reorganization under Chapter 11 (CLICK
HERE for related story). Among the approved motions, at press
time, were the following:
- The petition to reorganize under Chapter 11;
- A motion to continue the use of pre-petition bank accounts (granted
on an interim basis);
- A motion to continue certain employee compensation and benefits
programs, including wages, paid time-off benefits, health and
welfare benefits, the 401(k) savings plan and expenses for payroll
processing services (granted on an interim basis) and for financial
institutions to process and cash related checks and transfers;
- A motion to prohibit utility providers from altering or discontinuing
their services due to the Chapter 11 cases or any unpaid charges
incurred file to the Chapter 11 filing (also granted on an interim
basis); and
- A motion authorizing the retention of Garden City Group as
Diamond's claims, noticing and balloting agent during the reorganization;
The court document cites Garden City Group as a "disinterested
person" and notes that it will conduct an ongoing review of Diamond's
files for conflicts or circumstances that might disqualify it
from Chapter 11.
Diamond also was authorized to pay American Express on an interim
basis "only those pre-petition amounts that are currently due
or that will come due within 20 days of the Petition Date, provided
however, unless objections are filed with this Court by April 17,
2008 at 4:00 p.m.
" Though Wright Express also was included
in the original order, it was removed from the approved motion.
At press time, Diamond's motion to approve the plan for sale to
Guggenheim Corporate Funding LLC had not yet been addressed by the
court.
CLICK
HERE for full text of the document of order involving the payment
of the main petition to file under Chapter 11.
CLICK
HERE for full text of the document of order involving the payment
of wages.
CLICK
HERE for full text of the document of order involving utility
providers.
CLICK
HERE for full text of the document of order involving the retention
of Garden City Group Inc.
CLICK
HERE for full text of the document of order involving the use
of pre-petition bank accounts.
CLICK
HERE for full text of the document of order involving the delivery
of goods or services.
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