Werner granted court OK for second forbearance agreement, plans to file bid procedures this month

By Jennifer Lanning Drey

Portland, Ore., Feb. 7 - Werner Co. obtained court approval of a second forbearance agreement with debtor-in-possession facility lender Black Diamond Capital Management that will ensure Werner's continued access to funds necessary to operate the business and complete its operational and financial restructuring, according to a company news release.

The approval came Wednesday from the U.S. Bankruptcy Court for the District of Delaware.

"This agreement provides Werner the financial flexibility to complete its restructuring and continue positioning our business for long-term success," James J. Loughlin Jr., Werner's interim chief executive officer, said in the release.

Werner also announced Wednesday that it plans to file the proposed bidding procedures for a formal auction for the sale of substantially all of its assets in mid-February.

Werner entered into a $255.75 million asset sale agreement with Black Diamond Capital Management and Brencourt Advisors LLC on Feb. 2 but received a competing offer valued at $262 million from another investor group on Feb. 6.

The company expects an auction to be scheduled in May, according to the release.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-10578.

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