Diamond Debtor-in-Possession Motion Granted

The U.S. Bankruptcy Court for the District of Delaware has granted Kingston, Pa.-based Diamond Glass's motion that it be allowed to act under a "Debtor-in-Possession" (DIP) agreement with Guggenheim Corporate Funding LLC during the period of reorganization under Chapter 11. (CLICK HERE for related story.)

The court authorized Diamond to borrow up to $3.1 million under the Revolving Loan Commitment during the interim period "in accordance with the Budget and subject to the conditions in the DIP Credit Agreement."

In a separate ruling, the court also granted Diamond's motion authorizing the company "to pay the prepetition claims of certain critical vendors and service providers." The payments will be made "in [Diamond's] sole discretion, and in the reasonable exercise of their business judgment."

"We are extremely pleased with the Court's rulings yesterday," says Diamond president Bill Cogswell in a press release issued late this afternoon. "With approval of our new financing and cash receipts from continuing operations, we have more than sufficient resources and liquidity to continue operating as normal during our chapter 11 case. Our employees, our suppliers, our customers and everyone else who deals with us should see no difference in our day-to-day business."

CLICK HERE for full text of the court document regarding DIP agreement.

CLICK HERE for the full text of the court document regarding vendor payments.

CLICK HERE for the full text of the press release from Diamond.

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