KINGSTON, Pa. – Diamond Glass, which filed for Chapter 11 on April 1, announced that the judge presiding over its Chapter 11 case has approved all of the initial motions presented at its first hearings, including the interim approval of a new $7 million loan facility with Guggenheim Corporate Funding LLC (as agent for the senior secured lenders), and authority to borrow up to $3.1 million from that facility over the next three weeks. The company also won important approvals to pay its employees and continue their benefit programs; continue various customer programs, including the ability to honor customer warranties; and, in the case of the company's critical vendors, to negotiate agreements with them to ensure that the supply of product to the company continues uninterrupted during the Chapter 11 case.

"We are extremely pleased with the court's rulings yesterday," said President Bill Cogswell. "With approval of our new financing and cash receipts from continuing operations, we have more than sufficient resources and liquidity to continue operating as normal during our chapter 11 case. Our employees, our suppliers, our customers and everyone else who deals with us should see no difference in our day-to-day business."

The company said the court’s rulings ensure that payroll will be met regularly, paychecks will be honored as always and the company will maintain all of its employee benefit programs.

As previously announced, the company filed for Chapter 11 protection on April 1 to continue a sale and restructuring process to address a heavy debt burden it had acquired over the years. The company intends to ask the court to approve an auction sale process to ensure that the company receives the highest values for the benefit of its creditors in a sale of

the company's business. The company has already signed a purchase agreement with Guggenheim, as agent acting on behalf of the company's pre-petition and post-petition senior secured lenders. The auction sale process will subject Guggenheim's offer to competitive bidding by all interested parties. An important element of the proposed procedures is the additional offer by Guggenheim to provide (subject to certain conditions) up to $25 million of senior secured financing to bona fide purchasers to support competing bids at any auction to acquire the company's business and to provide additional working capital upon a closing of the sale to the successful bidder.

Cogswell stated, "The company expects that if Guggenheim is the successful purchaser, Guggenheim would continue the business in substantially the same manner as before."

A hearing for court approval of the auction process has been scheduled for April 24. The auction is proposed to be held in early June.

For more information about Diamond Glass, go to: http://www.diamondtriumph.com.