The glass-makers key lender, CapitalSource Finance LLC, has agreed to extend the loans maturity to Sept. 19, giving the bankrupt company more time to find a buyer for its assets.
The extension also takes away CapitalSources threat to force a closure and liquidation of the glass-maker, at least for the time being.
Glass Group is trying to sell the Flat River Glass factory and other assets after creditors grew frustrated with managements inability to turn around the money-losing operations. The glass-maker filed for Chapter 11 bankruptcy on Feb. 28.
The Flat River Glass factory employs about 530, making it the largest employer in Park Hills. The city of about 8,419 is in St. Francois County, 65 miles south of St. Louis.
This morning, Glass Group filed a motion that asks the Bankruptcy Court in Wilmington, Del., to approve today an amended loan agreement that provides for an 19-day extension.
Though a hearing was set for 10:30 a.m. ET, it was delayed until 4:30 p.m. ET while the parties finalize the loan deal.
Four investors already have bid for some or all of the properties in a Monday auction, but CapitalSource was unhappy with the bids. The lender said none was large enough to pay off the $38 million loan or other debt owed to Glass Group creditors.
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