100 year Old Federal-Mogul Obtains Final Approval of $675 Million Debtor-In-Possession Loan to Fund Operations...WHA HAPPENED?
SOUTHFIELD, Mich., Nov. 20 -- Federal-Mogul Corporation today received final court approval of $675 million of debtor-in- possession (DIP) financing provided by J.P. Morgan Chase & Co. to supplement liquidity and fund operations during its financial restructuring process.
Included in the order was the authorization for Federal-Mogul to use up to $220 million for loans and working capital needs of non-debtor subsidiaries and United Kingdom subsidiaries.
Federal-Mogul on October 4 had received interim court approval of $450 million of DIP financing provided by J.P. Morgan Chase & Co. to continue operations, pay employees and purchase goods and services going forward during its voluntary Chapter 11 case.
Federal-Mogul on October 1 announced that to separate its asbestos liabilities from its true operating potential, the company and its U.S. subsidiaries had voluntarily filed for financial restructuring under Chapter 11 of the U.S. Bankruptcy Code. In addition, Federal-Mogul subsidiaries in the U.K. filed jointly for Chapter 11 and Administration under the U.K. Insolvency Act of 1986.
Headquartered in Southfield, Michigan, Federal-Mogul is an automotive parts manufacturer providing innovative solutions and systems to global customers in the automotive, small engine, heavy-duty and industrial markets. The company was founded in 1899. Visit the company's web site at http://www.federal-mogul.com for more information.