Bolta’s unsecured creditors committee objects to DIP financing

By Sarah Lizee

Olympia, Wash., Feb. 13 – Bolta US Ltd.’s proposed $7 million debtor-in-possession facility drew an objection on Monday from the official committee of unsecured creditors, according to documents filed with the U.S. Bankruptcy Court for the Northern District of Alabama.

The committee called the objection a “placeholder” and said that good-faith negotiations have been and continue to be conducted between the committee, debtor and various stakeholders.

“This pleading is not intended to withdraw from such negotiations but rather to memorialize in the record for the committee’s concerns that are being negotiated into a hopefully agreed final DIP order,” the committee said.

The group said the proposed DIP financing and bid procedures surrender too much control to the lenders, allowing them to direct the liquidation of the debtor’s assets and control the bidding process.

The lenders are SMP Automotive Systems Alabama Inc. and Volkswagen Group of America Chattanooga Operations, LLC – two of Bolta’s main customers.

Interest is 7% per annum.

The plastic automotive parts manufacturer is based in Northport, Ala. The company filed bankruptcy on Jan. 13 under Chapter 11 case number 23-70042.

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