A U.S. Bankruptcy Court for the District of Delaware yesterday entered an order granting Gibson Brands Inc. the authority to access the full amount of its $135 million in debtor-in-possession (DIP) financing and use of cash collateral.
The news comes less than 1 month after Gibson Brands filed voluntary petitions and a plan of reorganization in the U.S. Bankruptcy Court for the District of Delaware in Wilmington on May 1st.
The Court also granted final approvals for the company's first day motions intended to support the business, including continuing to pay employee wages and benefits and to honor warranties and customer programs.
"This is the next milestone for Gibson in completing our pre-negotiated Chapter 11. Our financing has the support of all of our stakeholders. Today's decision assures that it remains business as usual at Gibson," said Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands. "Pursuant to the Restructuring Support Agreement and the Plan Term Sheet, this plan already has the critical support of our majority note holders. The transaction embodied in the Restructuring Support Agreement will, once approved, reduce our leverage, and allow us to quickly emerge from this process with a stronger balance sheet to support the Company's long-term success, benefiting our valued customers, business partners, and employees in the years ahead."