Plastech interim DIP financing extended to April 30, debt sale approved

By Caroline Salls

Pittsburgh, April 4 - Plastech Engineered Products, Inc. obtained court approval to extend the maturity date of its interim debtor-in-possession financing facility through the April 30 final hearing, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

Under the extension, Plastech will have access to $51.5 million in financing through April 30.

The company also received approval of a debt acquisition transaction under which a group of Plastech's major customers have agreed to purchase the current DIP facility and 100% participation in any remaining pre-bankruptcy loans, as well as to guarantee Plastech's $12 million of pre-bankruptcy letters of credit.

As part of the closing of the sale of the DIP facility, cash collateral pledged by the major customers to secure the post-petition revolving debt will be used to reduce the purchase price of the debt.

The major customers behind the transaction are General Motors Corp., Ford Motor Co., Johnson Controls Inc. and Chrysler LLC.

Plastech, a Dearborn, Mich.-based auto parts supplier, filed for bankruptcy on Feb. 1. Its Chapter 11 case number is 08-42417.

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