It's full speed ahead for a hearing for O'Sullivan Industries' request to approve up to $180,000 in expenses for financial institutions that might provide them with the funding to bring the company out of bankruptcy.
The quickness with which this hearing has been arranged is unbelievable since the first request for the expedited hearing was filed just this morning in U. S. Bankruptcy Court for the Northern District of Georgia.
The request comes according to the documents "following a lengthy series of negotiations," in which O'Sullivan officials, the ad hoc committee of senior secured creditors and the unsecured creditors committee "reached an agreement in principle regarding various disputed issues."
That agreement will apparently be spelled out in the near future when O'Sullivan filed a second amended bankruptcy petition.
In the documents filed today, O'Sullivan officials said they "anticipate emerging from bankruptcy in the next several months," once they get exit financing.
Their plan calls for negotiating a $50 million exit credit facility, which they say is "critical." In order to so do, they said, they have to pay the expenses of several potential lenders. These lenders, however, are not dummies. They are requiring that O'Sullivan pay them up front before they do anything. "Specifically, potential lenders have indicated that they will only initiate field/collateral audits once they have received deposits."
Leave it to the O'Sullivan officials not to wait for approval before doing this, The court documents say that these field/collateral audits have already been scheduled to being early next week, hence the reason for having the hearing on Monday.
If they don't receive approval to pay these lending institutions' expenses, the documents say, it could delay the company's emergence from bankruptcy. The documents also indicate that $180,000 is just a drop in the bucket compared to the $50 million they could receive if the exit credit facility is approved.