Court Approves First-Day Orders for A.B.Dick Company
Press release from the issuing company
CHICAGO, July 15 -- A.B.Dick Company said that U.S. Bankruptcy Judge Charles G. Case II of the United States Bankruptcy Court for the District of Delaware has approved "first-day" motions presented by the Company, including orders allowing the Company to continue to pay salaries, wages and benefits and honor pre-petition obligations to its employees, and orders authorizing the Company to honor its customers' maintenance contracts. The Court today also gave the Company interim approval to borrow up to $3.194 million from a $7 million debtor-in-possession (DIP) credit facility being provided to the Company by Presstek, Inc. and KeyBank National Association. The DIP credit facility also provides A.B.Dick Company with the ability to use proceeds from its pre-petition and post-petition receivables to fund its continuing operations through the Section 363 sale proceedings.
The orders provide the Company with the liquidity necessary to continue operations without disruption and meet its obligations to its suppliers, customers and employees during the Chapter 11 process. A final hearing on approval for use of the entire DIP facility has been set for August 5, 2004.
On July 13, 2004, A.B.Dick, a privately held, worldwide supplier of equipment and supplies to the graphic arts and printing industry, filed a voluntary petition for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code, along with its parent company, Paragon Corporate Holdings, Inc., and the Paragon subsidiaries Interactive Media Group and Multigraphics LLC. (The Paragon subsidiary Itek Graphix, Inc., was not included in the filing. A previous report to that effect was incorrect.) A.B.Dick at the same time announced that it has signed a purchase agreement with Presstek, Inc. (Nasdaq: PRST - News), for Presstek to acquire the business and assets of A.B.Dick, subject to Court approval. During the Chapter 11 and sale process, A.B.Dick and all its units will continue to manufacture and deliver products and provide services to customers as usual.
A.B.Dick has retained H. Jeffrey Schwartz and John A. Gleason of Benesch, Friedlander, Coplan & Aronoff LLP as debtor counsel, Candlewood Partners LLC as financial adviser, and Squire Sanders & Dempsey LLP as special corporate counsel.
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