Modern Continental seeks access to project bond receivables' cash collateral through July 4

By Caroline Salls

Pittsburgh, June 24 - Modern Continental Construction Co., Inc. is seeking emergency access to cash collateral to fund its operations, including payroll, through July 4, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The company said it is negotiating further use of cash collateral and debtor-in-possession financing.

According to the motion, the cash collateral will come from bond receivables related to three of Modern Continental's projects, including the Central Artery/Tunnel, or "Big Dig" project in Boston, a landfill capping project in Brooklyn, N.Y., and the widening and reconstruction of Route 3 in Massachusetts.

Modern Continental said it plans to complete its open contracts then launch a wind down of its affairs.

The company said it has liquidated most of its assets over the past four years and paid the proceeds to banks and noteholders to satisfy liens on the assets.

Modern Continental, a Dedham, Mass., contractor, filed for bankruptcy on June 23. Its Chapter 11 case number is 08-14558.

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