Mark IV granted interim access to $45 million of DIP financing; final hearing May 27

By Caroline Salls

Pittsburgh, May 4 - Mark IV Industries, Inc. has received interim court approval to access $45 million of its $90 million debtor-in-possession financing from JPMorgan Chase Bank, NA as part of its first-day bankruptcy approvals, according to a company news release.

The final DIP loan hearing is scheduled for May 27.

"Receipt of interim approval of our DIP financing should provide us with ample liquidity to fund operating expenses and meet obligations during the restructuring, assuring that daily operations continue as usual," Mark IV Power Transmission chief executive officer Jim Orchard said in the release.

As previously reported, the DIP facility will mature on May 4, 2010.

Interest on Base rate loans will be Base rate plus 400 basis points. Interest on U.S. and Canadian Eurocurrency term loans will be the Eurocurrency rate plus 500 bps, and interest on Italian term loans will be the Eurocurrency rate plus 350 bps.

The company will pay a $175,000 administration fee, as well as 10% commitment fees on the U.S. and Canadian loans and a 13% commitment fee on the Italian loan.

In addition, the company received court approval to continue operations, pay employee wages and benefits and purchase goods and services during the restructuring period.

"As we utilize the Chapter 11 process to strengthen our balance sheet, our employees worldwide remain focused on providing our customers with the leading-edge technology, product development, superior engineering, and outstanding service they have come to rely on from Mark IV," Orchard said in the release.

Mark IV, an Amherst, N.Y., manufacturer of engineered systems and components for the automotive, industrial and transportation markets, filed for bankruptcy on April 30. Its Chapter 11 case number is 09-12795.

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