Stant Corp, which this week filed for bankruptcy protection, said yesterday its first-day motions had been approved by the US bankruptcy court in Delaware. This permitted the supplier to continue operating while restructuring.
The 111-year-old maker of automotive fuel systems, fuel and radiator caps and thermostats, wants to sell its assets in bankruptcy, citing the global economic decline, high debt levels and the bankruptcies of General Motors and Chrysler.
Among motions permitted yesterday was the company’s request to approve its DIP financing by existing senior lenders and an affiliate of HIG Capital.
The funds will support the restructuring process and provide contingency liquidity to handle any unexpected needs, Stant said in a statement.
CEO Marlon Bailey said: “We are pleased that through the restructuring process, our balance sheet will strengthen while [it will be] business as usual. Receiving prompt approval for these first-day motions will keep Stant on track for a speedy exit from Chapter 11” expected this autumn.