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Diamond Glass files bankruptcy

Post Time:Nov 12,2013Classify:Industry NewsView:30

The U.S. Bankruptcy Court for the District of Delaware approved a $41 million debtor-in-possession loan April 2 for Diamond Glass, Kingston, Pa., according to an April 3 report from The Deal. The auto glass repair and replacement service provider filed Chapter 11 bankruptcy April 1. The company has 217 service centers and 900 mobile installation vehicles in 42 states. It employs about 1,600 people. The filing listed $105 million owed on loans, notes and payments, and nearly 90 percent of it payable on April 1, according to an April 2 report from The Times Leader. “We just can’t afford right now to pay that debt,” said Bill Cogswell, Diamond Glass president, in the report. The company filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code, together with a debtor-in-possession financing commitment by its senior secured lender Guggenheim Corporate Funding LLC, New York, to provide necessary liquidity during the Chapter 11 process, according to an April 1 PR Newswire release. The filing was the first step in a financial restructuring plan that could include a sale to Guggenheim. Diamond Glass officials have asked the bankruptcy court to approve the sale, in addition to a June auction in which other interested purchasers could attempt to better the Guggenheim proposal. "Our firm is a healthy, growing business that has faced significant financial challenges stemming from our current debt," said Cogswell, in the release. "The Chapter 11 process, and the potential sale of the business to Guggenheim, will provide us with an opportunity to remove a large obstacle to our future success …” In the meantime, the company expects business to continue as normal, with its current management and employees in place.Share this article:

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