Lawyers for the company and the unsecured creditors committee said in a court hearing on May 7 that they had reached an agreement to amend some of the loan terms, allowing the debtor-in-possession
funding to be approved.
GE Capital, Restructuring Finance has provided a USD505m debtor-in-possession
(DIP) credit facility to Borders Group Inc, a specialty book retailer.
If you or your client is a creditor, a proof of claim should be filed with the estate so that the claim is recognized and can be reviewed by the trustee or debtor-in-possession
, who will then either approve or dispute it and classify it according to type of claim.
Based in Montreal, AbitibiBowater sought similar protection in Quebec, where a court last month approved $100 million in debtor-in-possession
financing backed by the provincial government.
The trustee or debtor-in-possession
must prove that the pre-petition transfer of property under the settlement agreement was a transfer of an interest of the debtor in property.
According to the commitment letter, eligible inventory will be based on "standards at least as favorable" as Kmart's current debtor-in-possession
With certain limited exceptions, the debtor-in-possession
acts as the trustee.
The company also announced that it has entered into a commitment letter with certain of the DIP lenders to finance an amended and restated debtor-in-possession
credit agreement in an aggregate principal amount of $90 million (the "Restated DIP").
will provide the companies with $5 million in debtor-in-possession
The company said it plans to continue operating as debtor-in-possession
during its reorganization.
UAL Corp, the parent company of US airline United Airlines, has received approval to amend and extend its debtor-in-possession
financing to 30 September 2005.
The "estate" resolves the pre-petition issues, and the debtor-in-possession
maintains the post-petition company and works towards the re-organization (for a Chapter 11 case) by management of the company.