Otelco wins final approval to use cash collateral in pre-packaged case

By Jim Witters

Wilmington, Del., April 18 - Otelco Inc. was granted final approval for the continued use of its pre-petition lender's cash collateral during an April 18 hearing in the U.S. Bankruptcy Court for the District of Delaware.

The cash collateral motion faced no opposition in the pre-packaged bankruptcy case.

The company said it needs to use the cash collateral of its pre-bankruptcy lenders to fund its operations through the bankruptcy process.

The interim cash collateral order will expire on the earlier of 45 days after the bankruptcy filing date and entry of the final court order.

Otelco attorney Edmon L. Morton told the court the final order also "contains some leeway" in case there are delays in gaining regulatory approvals needed to complete the Chapter 11 plan of reorganization.

Otelco, an Oneonta, Ala.-based traditional wireline telephone services provider, filed for bankruptcy on March 24. Its Chapter 11 case number is 13-10593.

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