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Pliant granted $37 million interim DIP approval, OK for all first-day motions
By Caroline Salls
Pittsburgh, Jan. 4 - Pliant obtained interim approval to use up to $37 million of its proposed $68.8 million in debtor-in-possession financing from GE Commercial Finance and Morgan Stanley Senior Funding, Inc. as part of first-day motions approved Wednesday by the U.S. Bankruptcy Court for the District of Delaware.
A final DIP hearing is scheduled for Feb. 2.
The DIP includes a $25 million letter-of-credit subfacility and $10 million swingline subfacility.
According to court documents, the full DIP commitment amount is $200 million and the availability has been reduced by the amount outstanding under Pliant's pre-bankruptcy credit facility, leaving $68.8 million of final availability.
Maturity is the earlier of 24 months after the closing date or after other customary events that would trigger a maturity date under the DIP agreement.
Interest is Libor plus 275 basis points.
The commitment fee is 50 bps and the letter-of-credit fee is 275 bps plus a fronting fee at a rate to be agreed.
The company also obtained court approval to continue to pay employee salaries and provide benefits without interruption, to honor its commitments to its customers and to take other actions necessary to run the company with minimal disruption.
"This approval permits the company to maintain normal operations throughout the Chapter 11 process," president and chief executive officer Harold C. Bevis said in a company news release:
"We expect to continue to provide our customers with value-added products, superior service and leading-edge innovation programs."
Pliant, a Schaumburg, Ill., producer of film and flexible packaging products, filed for bankruptcy on Tuesday. Its Chapter 11 case number is 06-10001.
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