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Rotech receives approval from bankruptcy court

Rotech receives approval from bankruptcy court

ORLANDO—The U.S. Bankruptcy Court has granted Rotech's first-day motions, which are designed to ensure normal daily operations during the company's Chapter 11 debt restructuring, according to a press release. Among several motions, the court approved Rotech's ability to continue paying employee wages and benefits, and authorized the immediate use of $25 million of the company's $30 million debtor-in-possession (DIP) financing, the release stated. Additionally, the court approved Rotech's request for a hearing to establish the adequacy of its disclosure statement on May 16, according to the release. Rotech expects the reorganization to be complete by the end of the summer.

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