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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