Business-travel firm CWT won court approval to leave bankruptcy less than 24 hours after filing for chapter 11 protection, putting the company on track to complete a prearranged restructuring that cuts nearly $900 million in debt, WSJ Pro Bankruptcy reported. Hammered by the pandemic slowdown in corporate travel, CWT said it wanted to enter, and exit, bankruptcy within 24 hours to maintain its usual course of business while restructuring its balance sheet and ceding control to creditors. CWT entered chapter 11 on Thursday with support for the negotiated restructuring from most of its financial backers, including 100% of its bank lenders and over 90% of its secured creditors. Justice Department bankruptcy overseers tried to resist rapid confirmation of the plan, saying the breakneck speed circumvents the notice and due process that bankrupt companies must give affected stakeholders. But Judge Marvin Isgur of the U.S. Bankruptcy Court in Houston largely overruled those concerns at a hearing Friday, citing the importance of keeping the business on a stable footing. “Our failure to act promptly would jeopardize a number of jobs, but also decimate the value of the business in a way that would be injurious to the creditors and parties providing support,” he said. However, Judge Isgur also said he would sign off on a supplemental judgment that would give parties who felt their due process rights were overrun the opportunity to object to the plan and seek remedies.
