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RailWorks Corp. Oct. 18 announced that it earlier this month received U.S. Bankruptcy Court for the District of Maryland approval to receive on an interim basis up to $81 million of the company's $165 million debtor-in-possession (DIP) financing from numerous financial entities.
Baltimore-based RailWorks Sept. 20 filed for Chapter 11 reorganization under U.S. Bankruptcy Code, excluding the company's Canadian operations.
RailWorks plans to use the $81 million to fund daily operations, pay suppliers and vendors, and compete for new business. The court Oct. 23 will consider final approval for the remaining $84 million in DIP financing.
"The court's ruling puts funding in place on a going-forward basis that … assures our ability to continue to be a leading supplier of rail-related services and products," said RailWorks Chief Executive Officer John Kennedy in a prepared statement.