WEXFORD, Pa., Oct. 7 /PRNewswire/ -- PTC Alliance (www.ptcalliance.com), a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome-plated rod, announced today that the company and its U.S. subsidiaries received court authority to continue business operations without interruption during their Chapter 11 proceedings.
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court in Wilmington, Del. granted the company interim authority to access up to $2.5 million in debtor-in-possession financing. The company will use the financing, along with cash from operations, to fund operating expenses as it pursues a sale under Section 363 of the U.S. Bankruptcy Code. PTC Alliance will seek final authority to access up to $15 million in debtor-in-possession financing at a court hearing on October 27.
Additionally, Judge Sontchi granted the company authority to continue paying employee salaries and benefits and to maintain its cash management system.
"Approval of the 'first day' motions ensures PTC Alliance can continue normal business operations and serve our customers while we pursue the sale of substantially all of the company's assets," said Peter Whiting, the company's Chairman and Chief Executive Officer. "Products will continue to be shipped, suppliers will be paid on time and our employees will continue to receive salary and benefits."
As previously announced, PTC Alliance has entered into an asset purchase agreement with funds managed by Black Diamond Capital Management LLC, the pre-petition term lenders, to act as a "stalking horse" bidder for the sale of substantially all of the company's assets. Judge Sontchi will consider approval of the sale procedures, including the deadline to submit bids and a date to hold an auction, at the October 27 hearing.
PTC Alliance and its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code on Oct. 1, 2009 in the U.S. Bankruptcy Court, District of Delaware. The cases are jointly administered at Case No. 09-13395.
About PTC Alliance
PTC Alliance is a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome-plated rod. The company's major customers include steel service centers, automotive and truck manufacturers, construction and agricultural equipment OEMs and machinery and appliance makers. With eleven strategically located factories in North America and a manufacturing complex in Germany, PTC Alliance is able to minimize lead time, shipping distance and expense for its customers.
SOURCE PTC Alliance
PTC Alliance
