USG Receives Approval of First-Day Orders in Case
USG Corp. announced that it has received Bankruptcy Court approval to pay pre-petition and post-petition employee wages, salaries and benefits during its voluntary Chapter 11 case. As previously announced, USG and its major U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code on June 25, 2001, to manage the growing asbestos litigation costs of its USG Co. subsidiary and to resolve asbestos claims in a fair and equitable manner.
The Court also approved $150 million of interim debtor-in-possession financing for immediate use by the company to continue operations, pay employees and purchase goods and services going forward. In conjunction with the filing, USG received commitments for up to $350 million in DIP financing from JP Morgan Chase to supplement liquidity and fund operations during the restructuring process.