First Brands Group announced that the Company has received approvals from the United States Bankruptcy Court for the Southern District of Texas for its “First Day” motions related to the Company’s chapter 11 cases for its U.S. operations.
The Court granted approval to immediately access $500 million of the $1.1 billion in debtor-in-possession (“DIP”) financing from an ad hoc group of cross-holders (the “Ad Hoc Group”), which includes substantially all of the Company’s first lien debtholders. The DIP financing will provide the necessary capital for the Company to maintain operations and meet commitments to its customers and supplier partners. Additionally, the Company received authorization from the Court to, among other things, continue to pay employee wages and benefits without interruption, continue customer programs in the ordinary course, and pay vendors and suppliers in full for goods and services provided on a post-petition basis.
“We are pleased to have received Court approval to access significant new funding and continue operations as usual. This additional financing will enable First Brands to stabilize operations, improve fulfillment of customer orders, and meet our commitments to supplier partners going forward,” said Chuck Moore, Chief Restructuring Officer of First Brands. “We are grateful to our financial partners for their support, and remain laser-focused on delivering for our customers at the highest levels throughout this process.”
The chapter 11 cases pertain only to the Company’s U.S. operations. First Brands’ international operations as well as the Company’s Novares North America and Ultinon Motion businesses are not a part of the financial restructuring process and continue to operate in the ordinary course of business.
Weil, Gotshal & Manges LLP is serving as legal counsel, Lazard is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to First Brands.
Previously on ABL Advisor: First Brands Group Files Chapter 11, Secures $1.1B in DIP Financing