Shiloh Industries, Inc. Receives Court Approval of "First Day" Motions to Support Business Operations

Shiloh Industries, Inc. (NASDAQ: SHLO) (the “Company”) an environmentally focused global supplier of lightweighting, noise and vibration solutions, today announced that it has received approvals from the U.S. Bankruptcy Court for the District of Delaware for all of its “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on August 30, 2020.

The Court granted Shiloh interim approval to access up to $18.1 million of the $123.5 million in committed debtor-in-possession (“DIP”) financing from its existing lenders, consisting of approximately $23.5 million new money subfacility and a roll-up of approximately $100 million of commitments under the Company’s existing revolving credit facility, which, combined with cash generated from the Company’s ongoing operations, will be used to support the business throughout the sale process. Among other things, the Court has authorized the Company to continue to pay employee wages and benefits without interruption, honor customer commitments and otherwise manage its day-to-day operations in the ordinary course through the court-supervised sale process.

“We are pleased to have received the Court authorization we need to continue our operations during the sale process,” said Cloyd J. Abruzzo, Interim chief executive officer of Shiloh. “As we move through this process, we look forward to continuing to serve our customers and meet their needs as the automotive industry recovers from the COVID-19 pandemic. I would also like to thank our employees for their continued dedication to our company.”

As previously announced, Shiloh entered into a stalking horse stock and asset purchase agreement with Grouper Holdings, LLC (“Grouper”), a subsidiary of MiddleGround Capital LLC (“MiddleGround”) pursuant to which Grouper will acquire substantially all of the Company’s assets, including the equity interests of certain of the Company’s direct and indirect subsidiaries for an aggregate consideration of $218 million in cash, subject to working capital and net debt adjustments, and assumption of certain liabilities of the Company. To facilitate the sale, the Company and certain of its U.S. subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code for the District of Delaware. The transaction is being undertaken pursuant to Section 363 of the U.S. Bankruptcy Code. Accordingly, MiddleGround, via Grouper, is serving as the "stalking horse bidder" in a court-supervised sale process, subject to higher or otherwise better offers, among other conditions.