NE Opco Inc., the largest closely held envelope maker in North America, won court approval to borrow as much as $60 million of a bankruptcy loan to help fund operations.

U.S. Bankruptcy Judge Christopher Sontchi indicated at a hearing today in Wilmington, Delaware, that he will approve the interim bankruptcy financing provided by Salus Capital Partners LLC, as agent for lenders, after minor changes are made to language in the agreement.

The funding “gives the company a fair opportunity to sell the assets, and maximize the value for the estate,” John Knight, an attorney for NE Opco with Richards Layton & Finger PA, told Sontchi. The company said in court papers the bankruptcy loan will allow it “to take out the first lien lenders’ debt in full.”

The company will seek court approval to borrow the final $7.5 million of the total $67.5 million package at a hearing set for July 1.

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