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RailWorks Corp. Oct. 24 received final U.S. Bankruptcy Court approval for $165 million in debtor-in-possession (DIP) financing arrangements from several banking groups, including Bank of America N.A, CSFB Global Opportunities Advisers LLC, Stonehill Capital Management LLC and Travelers Casualty and Surety Co. of America.
Baltimore-based RailWorks previously received interim approval to receive up to $81 million of the $165 million DIP financing agreement, which includes a Letter of Credit (LC) and revolver facility of up to $35 million, an additional revolver facility of up to $30 million and a surety bonding facility of up to $100 million, supported by an LC facility of up to $40 million.
RailWorks and its operating U.S. subsidiaries Sept. 20 voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The rail product and service supplier's Canadian operations aren't involved in the filings and continue to operate outside of bankruptcy.