According to the debtor-in-possession financing arrangement, Wells Fargo will honor any check written to vendors between now and the closing of the sale of Genmar Holdings' assets, and any check that clears after closing will be honored by Platinum Equity, said David Steichen, a restructuring officer in the Genmar case.
The sale did not close Jan. 20, as anticipated, and the earliest it will close is Jan. 29, he said.
"Until that time we will continue to write checks to vendors for any materials we need," he said. "These checks, even if they do not clear the banks by the closing date, will be honored by Platinum post-closing. Their obligation to honor these outstanding check[s] post-closing is well-defined in the purchase agreement."