Corporate News Releases
Fedders Receives Court Approval On 'First-Day Motions' in its Voluntary Chapter 11 Filing
Obtains Approval of its New Financing Commitment
CONTACTS:
Anita-Marie Laurie or Tom Becker
(212) 573-6100
Both of Sitrick And Company
for Fedders Corporation
LIBERTY CORNER, New Jersey -- August 23, 2007 -- Fedders Corporation (OTC: FJCC) a leading global manufacturer of air treatment products, announced today it had received court approval of its $79 million debtor-in-possession (DIP) financing from Goldman Sachs Credit Partners L.P., subject to certain conditions and limitations. The final hearing on the financing has been scheduled for September 20.
The company also announced that it received Court approval during its first day hearings to, among other things, pay pre-petition and ongoing employee wages, salaries, workers' compensation, health benefits and other employee obligations during its restructuring under Chapter 11. In addition, the company received authorization to continue with ordinary course customer programs, including warranty. The company also is authorized to pay ordinary course post-petition expenses without seeking court authority.
Fedders President and Chief Executive Officer Michael Giordano said he was extremely pleased with the Court's approval of its "first-day" orders and new financing.
"We expect the new financing to provide adequate funding for our supplier and employee obligations going forward," Mr. Giordano said, noting that the Company has been in contact with many of its customers and suppliers, who have indicated that they will support Fedders during the restructuring process.
For more information about Fedders and the reorganization, visit http://www.fedders.com.
About Fedders:
Founded in 1896, Fedders Corporation (OTC: FJCC) is a leading global manufacturer of air treatment products, including air conditioners, furnaces, air cleaners and humidifiers for residential, commercial and industrial markets.
This news release includes forward-looking statements that are covered under the "Safe-Harbor" clause of the Private Securities Litigation Reform Act of 1995. Such statements are based upon current expectations and assumptions. Actual results could differ materially from those currently anticipated as a result of known and unknown risks and uncertainties including, but not limited to, weather and economic, political, market and industry conditions and reliance on key customers. Such factors are described in Fedders' SEC filings, including its most recently filed annual report on Form 10-K. The company disclaims any obligation to update any forward-looking statements to incorporate developments occurring after release of this announcement. Visit the Fedders investor information website at http://www.fedders.com to access additional information on Fedders.
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