Hexion Inc. announced that it has received final authorization from the U.S. Bankruptcy Court for the District of Delaware to access the full amount of its $700 million in committed debtor-in-possession (DIP) financing. The Company had previously received interim approval from the Bankruptcy Court to access up to $600 million of the DIP financing.

According to court filings, JPMorgan Chase Bank, N.A. served as administrative agent and collateral agent for the DIP ABL Lenders.

The Bankruptcy Court also granted final approval for several other customary motions that, among other benefits, enable Hexion to continue to meet its operational needs while moving forward with the process toward implementing its de-leveraging plan.

Craig A. Rogerson, Chairman, President and CEO of Hexion, stated: “This final approval from the Court provides Hexion complete access to our $700 million in DIP financing. We expect to implement our de-leveraging plan and emerge from the restructuring process this summer. Our Plan now has the support of approximately 90% of noteholders across our capital structure, further demonstrating their confidence in our businesses and our team. Upon emergence, with a significantly stronger balance sheet, Hexion will be well positioned to further invest in our specialty product portfolio, generating long-term growth and value for all our stakeholders. As always, we remain committed to providing our customers with the high-quality products and service they expect from Hexion.”

As previously announced on April 1, 2019, Hexion entered into a Restructuring Support Agreement (RSA) with the vast majority of holders of each of the Company’s notes issuances, representing overwhelming consensus across its capital structure, on the terms of a consensual financial de-leveraging plan. To implement the RSA, the Company, including substantially all of its U.S. subsidiaries and one non-operating entity based in Nova Scotia, Canada, voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Hexion filed its Plan and Disclosure Statement on April 24, 2019, and the Company continues to move at an accelerated pace to implement its restructuring, with a hearing to approve the Plan for solicitation scheduled for May 22, 2019.

All of Hexion’s global business segments are continuing to operate as normal, and Hexion’s operations outside the U.S. are not included in the Chapter 11 proceedings. The consummation of the Plan is subject to Bankruptcy Court approval and satisfaction of other conditions.