Diamond Glass Wins Final Approval from Bankruptcy Court for $7 Million Debtor-In-Possession Financing Facility & Continuation of an Auction Sale Process Aimed at Preserving the Business
Published April 25th, 2008
KINGSTON, Pa - DIAMOND GLASS announced today that in hearings this afternoon in its chapter 11 case in Wilmington, Delaware, the United States Bankruptcy Judge presiding over its case gave final approval to borrow $7 million in new debtor-in-possession financing from Guggenheim Corporate Funding LLC (as agent for the senior secured lenders, inclusive of the $3.1 million the Company was authorized to borrow on April 2, 2008). The Court also approved the going concern sale process of the Company on the timetable proposed by the Company, leading to an auction to be conducted on June 5, 2008. These rulings followed negotiations which led to a settlement of all objections brought by the Official Committee of Unsecured Creditors. The Company’s bankruptcy counsel Michael P. Richman of Foley & Lardner LLP, informed the Court that more than forty different parties had signed the paperwork and received preliminary financial and other information, and expressed the hope that bidding would be lively and competitive.
The Bankruptcy Court also gave final approval to all the motions to which interim approval had previously been granted on April 2, 2008, including motions to pay employee benefits, prepetition wages, critical vendors, and otherwise to continue to operate fully in the ordinary course of business. “We are extremely pleased to have agreement with our Creditors’ Committee to support our Company and our sale process. We have done as well as we could possibly have hoped in assuring the best chances for the Company’s long-term survival,” said President Bill Cogswell.
As previously reported, the Company filed for chapter 11 protection on April 1, 2008 to continue a sale and restructuring process in order to address a heavy debt burden it had acquired over the years. DIAMOND GLASS is one of the nation’s oldest and leading providers of automotive glass replacement and repair services. Founded in 1923 by the Levine family and headquartered in Kingston, Pennsylvania, the business grew into a network of 217 service centers and 900 mobile installation vehicles in 42 states, serviced by three distribution facilities located in Kingston, Pennsylvania; Columbus, Ohio; and Atlanta, Georgia. Approximately 1,600 people are employed by the Company, including field technicians, customer service representatives, sales associates and corporate associates.
Web site: http://www.diamondtriumph.com
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