MCI was granted approval to access $278 million of its $315
million debtor-in-possession (DIP) financing facilities as part of its “first day
motions,” which were approved by the United States Bankruptcy Court for the
District of Delaware.
GE Capital is the
arranger and largest lender of the senior DIP facility that will refinance
MCI's existing first lien debt and provide additional liquidity necessary for
day-to-day operations. Goldman Sachs Credit Partners L.P. is the arranger of,
and Monarch Alternative Capital LP (through certain of its affiliates and funds
under its management) is participating in, the junior DIP facility. These funds
will be used to continue to pay employee wages and benefits, compensate vendors
and improve liquidity during MCI's voluntary financial restructuring.
also granted approval to continue all customer programs without interruption
and pay post-petition expenses without seeking court approval. The company also
received approval to continue to honor its current standard limited warranties
MCI and its U.S. subsidiaries filed voluntary petitions for Chapter 11 on Sept. 15, 2008, to
implement a pre-negotiated restructuring plan to be funded by Franklin Mutual
Advisors LLC and some of its affiliates. MCI’s Canadian operations are not
included in the filing.
"Approval of the 'first day motions' by the court will
enable MCI to continue operations without interruption while we proceed with
our restructuring efforts. MCI intends to work closely with all of its
stakeholders to implement our pre-negotiated restructuring plan and emerge by
February 2009," said Tom Sorrells, president/CEO. "We're pleased with
the quick action and support by the Bankruptcy Court, which will enable us to
progress with our plans."
Additional information regarding court documents is