Real Industry, Real Alloy receive court approval of 'first day' motions
Real Industry announced that the company and Real Alloy Holding and its U.S. subsidiaries have received interim approval from the U.S. Bankruptcy Court for the District of Delaware for all of the "first day" motions related to their November 17, 2017 filings of petitions for voluntary Chapter 11 reorganization. Collectively, the motions granted by the Court on an interim basis facilitate and ensure that the Company and Real Alloy continue uninterrupted operations throughout the reorganization process, giving the Company and Real Alloy the authority to make payments to suppliers and service providers as well as to continue to pay employees wages, salaries and benefits. Among other things, the Court has approved Real Alloy's debtor-in-possession financing, which includes the continued use of its $110M asset-based lending facility and up to $50M of the incremental $85M of new money being provided by holders of a majority of Real Alloy's bonds. The DIP financing, combined with cash generated from Real Alloy's ongoing operations, will be available to meet Real Alloy's operational and working capital needs during the reorganization effort under Chapter 11. The Court set a hearing date of December 19, 2017 for final approval of the DIP financing.