The financing, coupled with the cash generated from Greatwide's daily operations, will meet the daily operating needs of the business and provides additional operational and financial stability as the company proceeds with its financial restructuring and proposed sale.
In October, Greatwide announced that it intends to enter into an agreement to be acquired by an investor group made up of its first lien secured lenders, including affiliates of Centerbridge Capital Partners and the D.E. Shaw group. Greatwide will sell the company under Section 363 of the U.S. Bankruptcy Code. Other parties will have an opportunity to submit higher and better offers to purchase the company under this court-supervised process.
"Final court approval of our financing agreement is another important step forward in our sale process," said Raymond B. Greer, president and CEO. "We have already made good progress, we have sufficient cash in place and we are confident that our financial restructuring and proposed sale is the best way to address our capital structure needs while avoiding disruptions to our operations and customer service."
Greatwide expects that the proposed sale, once approved by the court, will help it to significantly reduce debt, enhance its competitiveness and financial strength, and position it for continued growth and profitability.
The company anticipates completing its financial restructuring process and closing the transaction by the end of January, approximately 100 days from the date of filing. Greatwide will continue operating under the Greatwide name under new ownership.