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MCI granted final approval to continue customer programs

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.

October 23, 2008
2 min to read


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.

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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.

 

 

 

 

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