Laidlaw gets funding from GE

Bankrupt transportation conglomerate Laidlaw Inc. has successfully established a $200 million secured revolving debtor-in-possession (DIP) financing facility. The financing, which includes a $100 million letter of credit sub-facility, is being provided by General Electric Capital Corporation and General Electric Capital Canada. The funding has been approved by the Ontario Superior Court of Justice

Bankrupt transportation conglomerate Laidlaw Inc. has successfully established a $200 million secured revolving debtor-in-possession (DIP) financing facility. The financing, which includes a $100 million letter of credit sub-facility, is being provided by General Electric Capital Corporation and General Electric Capital Canada.

The funding has been approved by the Ontario Superior Court of Justice and US Bankruptcy Court, according to Laidlaw.

“With the DIP financing facility in place, current cash-on-hand of approximately $260 million and approximately $70 million of availability under the Greyhound Lines Foothill facility, Laidlaw currently has liquidity in excess of $530 million,” said Steve Cooper, the company’s vice chairman and chief restructuring officer. “This availability is expected to be sufficient to meet the company's needs for the foreseeable future and to ensure business-as-usual as the new school year starts.”

Laidlaw and five of its subsidiaries – Laidlaw Investments Ltd., Laidlaw International Finance Corporation, Laidlaw One, Inc., Laidlaw Transportation, Inc. and Laidlaw USA, Inc. – filed for Chapter 11 protection in June from the U. S. Bankruptcy Court for the Western District of New York. The company and Laidlaw Investments Ltd. will also be filing cases under the Canada Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Toronto.

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