Kidde-Fenwal secures bankruptcy court approval of first-day motions

By Sarah Lizee

Olympia, Wash., May 17 – Kidde-Fenwal, Inc. has received interim approval of its first-day motions from the U.S. Bankruptcy Court for the District of Delaware, according to a Wednesday morning press release.

Among other relief, the court granted approval for the company to continue paying contract workers, utilities and certain vendors for pre-petition claims; using existing cash management systems; and relying on the shared services agreement with parent Carrier Global Corp.

As previously reported, the company intends to use the bankruptcy process to explore strategic alternatives, including a sale of the company as a going concern.

Kidde-Fenwal operates two industrial business lines with over $200 million in sales in 2022. The Kidde consumer and commercial businesses are not a part of the filing, and their operations are unaffected.

The company said it has a strong liquidity position, with over $100 million in cash on hand, and is not seeking debtor-in-possession financing.

The industrial fire detection and suppression company is based in Ashland, Mass. The company filed bankruptcy on May 14 under Chapter 11 case number is 23-10638.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.