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Werner first-day motions approved, granted interim DIP access
By Caroline Salls
Pittsburgh, June 13 - Werner Co. obtained court approval of all of the first-day motions that will help it continue to operate in the normal course of business during the Chapter 11 reorganization process, including interim approval to use $75 million of its $99 million debtor-in-possession facility, according to a company news release.
Specifically, Werner also obtained approval to continue payment of wages and benefits to employees and independent sales representatives, to fulfill customer orders and provide uninterrupted customer service.
The DIP facility, provided by Black Diamond Commercial Finance, will provide Werner with additional liquidity and will be available to help with payments to suppliers.
The DIP facility includes a $24 million revolving credit line and a $75 million term loan.
Interest on the revolver and term loan will be Libor plus 400 basis points.
Werner will pay a 75 basis point commitment fee, a 2% arrangement fee, a $100,000 facilities administration fee and a $200,000 expense deposit.
Maturity will be the earliest of 18 months, 45 days after the interim order if a final order has not been entered, the effective date of a plan of reorganization, upon the termination or expiration of the company's exclusive period to file a plan of reorganization and upon acceleration of the loans.
A final hearing is scheduled for July 13.
Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on Monday in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-10578.
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