Polaroid Receives Approval of First Day Orders from Court
Press release from the issuing company
CAMBRIDGE, Mass., Oct. 15 -- Polaroid Corporation announced today that the U.S. Bankruptcy Court in Wilmington, Delaware approved all of the company's first day motions, which are intended to support its customers, employees, suppliers and business partners; to obtain interim financing authority; and to maintain existing cash management systems. The action follows Friday's announcement by Polaroid that the company and its U.S. subsidiaries have filed for reorganization under Chapter 11 of the U.S.Bankruptcy Code.
Polaroid's financial and operational stability going forward were enhanced through the granting of the following motions: payment of pre-petition and post-petition employee wages, salaries, business expenses and benefits, including medical, dental and life insurance benefits for current employees; interim approval for debtor-in-possession (DIP) financing of $40 million (out of a total commitment of $50 million) for use by the company to continue operations, honor product warranties and continue customer programs (including rebates, promotions, incentives and returns) and to purchase goods and services from suppliers; and financing authority to pay certain pre-petition commitments that are necessary in the course of conducting business.
The DIP financing package was provided by a bank group led by J.P. Morgan Chase & Co., and the Court has scheduled a final hearing on DIP financing at 11:30 a.m. on Monday, November 5, 2001.
Gary T. DiCamillo, chairman and chief executive officer, said, "We are pleased with the prompt approval by the court of our 'first day orders,' which will enable the company to continue conducting business in the U.S. and worldwide as it proceeds with the reorganization process and accelerates and intensifies its exploration of a sale of all or parts of the company. We remain focused on serving our customers and believe the prompt approval of these 'first day orders' is good news for Polaroid, as well as for our customers, employees and business partners.''
The case has been assigned to the Honorable Judge Peter J. Walsh under Case Number 01-10864.
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