Judge grants initial motions in Weinstein Co. bankruptcy
DOVER, Del. — A Delaware bankruptcy judge on Tuesday issued initial orders allowing the Weinstein Co. to continue paying its bills and working toward a sale of substantially all of its assets.
Judge Mary Walrath’s rulings include interim approval for the company to borrow up to $25 million to see it through bankruptcy, but only after she expressed concern about the loan terms in the face of a competing financing proposal.
After lengthy arguments by attorneys, Union Bank, the Weinstein Co.’s major existing lender and primary secured creditor, agreed to reduce the amount of upfront fees it was seeking to provide bankruptcy financing.
Robert Del Genio, a consultant serving as chief restructuring officer for the Weinstein Co., testified that the time constraints the company is facing and the loan certainty offered by Union Bank were key factors in accepting its financing offer, which includes an initial draw of $7.5 million.