Carla’s Pasta secures approval to use cash collateral through July 30

By Sarah Lizee

Olympia, Wash., June 4 – Carla's Pasta, Inc. received an extension of its access to cash collateral through July 30 from June 1, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Connecticut.

The order said that the debtors require the extended use of cash collateral to preserve the value of the estates.

“The debtors do not have sufficient funding for the orderly transition and winddown of the business without the use of cash collateral,” the order said.

Carla’s Pasta said that although no additional borrowings are required to complete the administration of the Chapter 11 cases, the debtors will continue to require use of cash collateral.

“The continued use of cash collateral will allow the debtors to pay their limited but necessary operating expenses, address any post-sale closing transition expenses, commence an orderly winddown of the remaining business operations, and fund related administrative expenses,” the company said in its motion.

The South Windsor, Conn.-based pasta manufacturing company filed bankruptcy on Feb. 8 under Chapter 11 case number 21-20111.

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