Marketplace Today Blog

By Don Walker
Milwaukee Journal Sentinel

Neenah Enterprises Inc., a major supplier of manhole covers, announced Thursday that a federal bankruptcy court had approved a special credit facility to keep the company in operation.

A hearing was held Tuesday in the U.S. Bankruptcy Court in Delaware. At that hearing, the company was given approval to create a debtor-in-possession credit facility. Last month, Neenah Enterprises filed for reorganization under Chapter 11 of the federal bankruptcy laws.

The $140 million credit facility includes a $50 million term loan and a $90 million revolving credit facility. The credit facility will be used for the company’s daily operations.

NEI is the parent company of the 125-year-old Neenah Foundry Co., based in Neenah.

“We are pleased to have received the final approval of our DIP facility, and the continued support from our lenders,” said Robert E. Ostendorf Jr., the company’s president and CEO. “The DIP facility enables us to continue to provide our employees with pay and benefits, make post-petition payments to suppliers, and continue to satisfy our commitments to our customers.”