Werner to receive up to $315,731 in additional wind-down funding

By Caroline Salls

Pittsburgh, Sept. 14 - Werner Holding Co. (DE), Inc. will receive a maximum of $315,731 in additional funding to wind down its operations, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Although bid sponsor Milk Street Investors LLC has capped the additional funding at $315,731, the company will receive at least $300,000 in wind-down funding.

As previously reported, the company requested $350,000 in additional funding, but Werner, its official committee of unsecured creditors and Milk Street have all agreed to the reduced amount.

Werner said it needs the additional funding on top of the $750,000 already in the budget for unexpected wind-down costs following the company's sale.

Without the money, the company will not be able to fund a plan of reorganization and may have to covert its Chapter 11 case to Chapter 7, the motion said.

According to Friday's order, the additional funding must be used after the $750,000 is depleted, and the new funding can only be used for budgeted items not covered by the original wind-down funding.

Under the funding agreement, Werner's plan of reorganization must be confirmed by Oct. 25 and the plan must take effect by Oct. 31.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006. Its Chapter 11 case number is 06-10578.

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