Borden announces court approval following bankruptcy
Borden announced that it received court approval last Wednesday of all the initial motions filed with its bankruptcy on January 5. This allows Borden to continue paying employee wages, benefits and reimbursable expenses.
Vendor invoices and expenses related to pre-petition obligations to customers that were committed to prior to filing will also be paid. Borden has another court hearing scheduled for January 23, and hopes it will be granted approval to continue normal business operations for the remainder of court proceedings.
Tony Sarsam, Borden CEO, said, "We are thrilled that Borden had a very productive court hearing last week. Earning these approvals was an important milestone as we continue normal business operations and work to resolve this matter expeditiously.
"Borden employees have done a superhuman amount of work to ensure that there are minimal interruptions to our business. I want to offer my heartfelt thanks to these special employees for all their work to take care of the Borden family and those we love to serve, truly living 'The Borden Difference.'"
Borden’s said its bankruptcy filing is a strategic move to reduce its current debt load, maximize value and position the company for long-term success. The company is EBITDA-positive and has been growing, with solid earnings, according to Sarsam.