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RailWorks receives interim financing to reorganize under Chapter 11

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.

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More News from 10/19/2001