From The Detroit News/Mema Industry News
PHILADELPHIA — Federal-Mogul Corp. has received court approval to enter into a $3.5 billion finance package aimed at moving the auto parts maker out of Chapter 11 bankruptcy.
Judge Judith Fitzgerald of the U.S. Bankruptcy Court in Wilmington, DE, issued an order allowing Federal-Mogul to sign loan-commitment documents with affiliates of Citigroup Inc. and JPMorgan Chase & Co.
When the Southfield-based company gets out of bankruptcy, the exit financing will replace a $775 million bankruptcy loan from a syndicate of lenders also led by Citigroup. Confirmation hearings are still under way.