GST Autoleather Cleared For Ch. 11 Bidding, Borrowing

Law360, Wilmington (November 13, 2017, 10:19 PM EST) -- Last minute talks produced an interim breakthrough Monday on post-petition borrowing and Chapter 11 bidding for bankrupt upholstery maker GST Autoleather Inc., although tensions remain high between unsecured creditors and lenders.

Judge Laurie Selber Silverstein approved the company’s debtor-in-possession loan agreement, initially proposed at $40 million, with agent Royal Bank of Canada after more than an hour of closed-door talks produced an agreement adding to fees available for the company’s committee of unsecured creditors.

Benjamin M. Rhode of Kirkland & Ellis LLP, counsel to Autoleather, told Judge Laurie Selber Silverstein that the agreement set a $1.7 million cap on fees paid...

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