The U.S. Bankruptcy Court granted final approval to Appvion’s motion to approve a compromise and for entry of an order approving a stipulation with KeyBank National Association to obtain post-petition unsecured credit.
As previously reported, “The stipulation with KeyBank is to obtain postpetition unsecured credit on a revolving basis in an amount not to exceed $250,000 at any time under that KeyBank Credit Card Program for Debtors’ employees to use in the ordinary course of business, conditioned upon payment of $295,574.69 due and owing to KeyBank in respect of prepetition charges made by the Debtors’ employees under the KeyBank Credit Card Program.”
In addition, “While the Debtors’ prepetition credit limit was up to $1.6 million, the postpetition transactions will be identical in nature and under the credit limit permitted by the Stipulation will substantially mimic the prepetition transactions under the KeyBank Credit Card Program. Further, corporate credit card programs, which allow employees to incur and pay business expenses, are common in many industries, including the paper manufacturing industry. The KeyBank Credit Card Program passes both the vertical and horizontal dimension tests and is, therefore, incurred in the ordinary course of the Debtors’ business.”
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