Motor Coach Industries (MCI) announced the final approval of
all of its “first day motions” by the United States Bankruptcy Court for the
District of Delaware.
Late last week, MCI was granted final approval to continue
all customer programs and services without interruption, and will also continue
to honor all standard limited warranties on its coaches. The Bankruptcy Court
had previously granted final approval of other “first day motions,” including
authority to pay pre-petition claims of critical vendors.
Additionally, MCI received final approval of its $311
million debtor-in-possession (DIP) financing facilities. 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 a lender in, and Monarch Alternative Capital LP (through certain of its
affiliates and funds under its management) is participating in, the junior DIP
facility. MCI also received approval to perform under the “lock up” agreement
with Franklin Mutual Advisers LLC and certain of its affiliates, a key element
of the company’s pre-negotiated restructuring plan.
As previously announced, MCI and its U.S. subsidiaries filed voluntary petitions for Chapter 11 in September to implement
a pre-negotiated restructuring plan to be funded in part by Franklin Mutual
Advisers LLC and/or certain of its affiliates. The company’s Canadian
operations are not included in the filing.