High Voltage DIP hearing postponed

By Ellen Chang

Houston, Feb. 16 - High Voltage Engineering Corp.'s Tuesday hearing to obtain debtor-in-possession financing was postponed by the U.S. Bankruptcy Court for the District of Massachusetts.

The court is allowing the company to submit more evidence for the financing by Wednesday.

The court also granted other parties the opportunity to request an examination of High Voltage's witnesses on Wednesday.

High Voltage's planned debtor-in-possession financing facility ran into objections from an ad hoc committee of equity holders.

In a filing Monday, they complained the proposed terms would give lender GE Commercial Finance too much control over the course of the bankruptcy case and that the company was rushing into a sale when alternatives might produce a better outcome.

High Voltage has a commitment for $16.2 million of debtor-in-possession financing from GE Commercial Finance. It is asking for interim approval for $5 million, of which $2.5 million will be available immediately and $2.5 million once it meets certain conditions.

High Voltage filed Feb.8 for Chapter 11 in the U.S. Bankruptcy Court for the District of Massachusetts. Its case number is 05-10787.

The New Kensington, Pa., maker of industrial power control and surface analysis products previously emerged from Chapter 11 on Aug. 10, 2004 under a restructuring that converted its 10½% senior notes to equity in the reorganized company.

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