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.

MCI was 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 on coaches.

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 available here.