Court Approves Murray Cash Collateral Deal

May 12, 2005 ( - A US Bankruptcy judge has approved Murray Inc.'s request to use cash collateral held by the Pension Benefit Guaranty Corp (PBGC) to help pay for its corporate reorganization.

>According to a report on, the PBGC and Murray’s unsecured creditors committee did not object to the request. The PBGC insures the nation’s private-sector pension plans.

>In January, Briggs & Stratton Corp. acquired Murray’s US assets for $125 million. The proceeds were earmarked to go to debtor-in-possession and pre-petition lender GE Capital Corp. and the PBGC. The latter holds a $6.98 million secured claim.

>The Brentwood, Tennessee-based lawn product supplier faces a $45 million pension gap, $6.3 million of which is past due, according to the Web report.

>US Bankruptcy Judge Marian Harrison in the U.S. Bankruptcy Court for the Middle District of Tennessee in Nashville signed the cash collateral order earlier this month, according to the report.

>Murray filed for Chapter 11 protection on November 8, 2004 in the Nashville court.