The Holliston Mills, Inc. Seeks Chapter 11 Protection
On May 21, 2007, The Holliston Mills, Inc., filed a chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of Delaware. The petition has been assigned case number 07-10687 and Chief Bankruptcy Judge Mary F. Walrath is presiding over the matter.
According to the Affidavit of Lawrence C. Maston in Support of First Day Motions, the Debtor is a Delaware corporation headquartered in Church Hill, Tennessee, and is the nation's oldest and largest manufacturer of coated cloth material products used for book covers, passport covers, specialty packaging materials and coated fabrics that are used as component material in the manufacture of items such as tape, sandpaper and abrasive materials, and rubber products.
According to events at today's First Day hearings, the debtor is looking to sell its assets in an auction that the debtor hopes to hold in early July, 2007. The debtor's lender is anticipated to be the stalking horse for such auction.
Judge Walrath today indicated that she will approve an initial interim DIP facility of $650,000, and will hold a second interim hearing on the DIP on June 6, 2007. Debtor's counsel indicated that the $2 million DIP facility they will seek to approve at the final DIP hearing is "new money" and will not rollup any of the prepetition secured debt.
