In re

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE
Chapter II
ELECTROGLAS, INC., et al.,
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Case No. 09-12416 (PJW)
(Joint Administration Pending)
Debtors.
__________________________) Related Docket No. 7
ORDER AUTHORIZING (I) CONTINUED MAINTENANCE
OF EXISTING BANK ACCOUNTS; (II) CONTINUED USE OF
EXISTING CASH MANAGEMENT SYSTEM; (III) CONTINUED USE
OF EXISTING CHECKS AND BUSINESS FORMS; AND (IV) WAIVER
OF INVESTMENT AND DEPOSIT REQUIREMENTS
THIS MATTER having come before the Bankruptcy Court upon the motion (the
"Motion")
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of the Debtors for entry of an order authorizing: (a) the continued maintenance ofthe
Debtors' existing bank accounts; (b) the continued use of the Debtors' existing cash management
system; (c) the continued use of the Debtors' existing checks and business forms; and (d) the
waiver of certain investment and deposit requirements; and the Bankruptcy Court having found
that: (a) it has jurisdiction over the matters raised in the Motion pursuant to 28 U.S.C. 157 and
1334(b); (b) this is a core proceeding pursuant to 28 U.S.C. 157(b)(2); (c) venue is lying
properly with the Bankruptcy Court; (d) the relief requested in the Motion is in the best interests
of the Debtors, their estates and their creditors; (e) proper and adequate notice of the Motion and
the hearing on the Motion has been given and that no other or further notice is necessary or
required; and (f) upon the record and after due deliberation, good and sufficient cause exists for
the granting of the relief as set forth in this Order; it is hereby
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The Debtors are Electroglas, Inc. (EIN 77-0336101) and Electroglas International, Inc. (EIN 77-0345011).
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Capitalized terms used but not otherwise defined in this Order shall have the meanings ascribed to them in the
Motion.
Docket No. 35
July 13, 2009
ORDERED, that the Motion is granted in its entirety; and it is further
ORDERED, that the Debtors are authorized to continue to use their existing cash
management system, including without limitation the continued use of their existing Accounts
with the same names and account numbers as existed immediately before the Petition Date; and
it is further
ORDERED, that the Debtors are authorized to deposit funds in and withdraw funds from
the Accounts by all usual means, including, but not limited to, checks, wire transfers, electronic
funds transfers and other debits, and to otherwise treat the prepetition Accounts for all purposes
as debtor in possession accounts; and it is further
ORDERED, that all banks where the Debtors maintain the Accounts are authorized and
directed to continue to maintain, service and administer the Accounts, except that those banks
shall not be authorized to honor any check issued or dated before the Petition Date absent an
order of the Bankruptcy Court and direction from the Debtors to honor such checks. Those
banks shall have no liability to any party for relying on the directions of the Debtors as provided
in this Order, so long as such reliance was in good faith; and it is further
ORDERED, that the Debtors are authorized to continue using their existing Business
Forms, which forms shall not be required to include the legend "Debtor in Possession" or other
similar legend; and it is further
ORDERED, that the Debtors are authorized to continue using their existing check stock;
provided, however, that upon depletion of the Debtors' check stock or business form stock, the
Debtors are directed to obtain new check stock or business form stock (as the case may be)
reflecting their status as debtors in possession; and it is further
ORDERED, that the Debtors are authorized, for a period of 60 days from the Petition
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Date, to invest and deposit funds in accordance with their prepetition investment practices,
notwithstanding that certain of such practices may not strictly comply in all respects with the
investment guidelines expressly set forth in section 345 of the Bankruptcy Code. If the Debtors
determine that some accounts or deposits will not comply with the requirements of section 345
within the stated 60 day period, the Debtors may request further consideration of the relief
requested in this Motion pertaining to modification of the section 345 requirements; and it is
further
ORDERED, that for banks at which the Debtors hold accounts that are party to a Uniform
Depository agreement with the Office of the United States Trustee for the District of Delaware,
within fifteen (15) days from the date of entry of this Order the Debtors shall (a) contact each
bank, (b) provide the bank with each of the Debtors' employer identification numbers, and (c)
identify each of their accounts held at such banks as being held by a debtor in possession; and it
is further
ORDERED, for banks that are not party to a Uniform Depository Agreement with the
Office of the United States Trustee for the District of Delaware, the Debtors shall use their good-
faith efforts to cause the bank to execute a Uniform Depository agreement in a form prescribed
by the Office of the United States Trustee within sixty (60) days of the date of entry of this
Order; and it is further
ORDERED, that all applicable banks and other financial institutions are authorized to
accept and hold or invest funds, at the Debtors' direction, in accordance with the Debtors'
prepetition investment practices; and it is further
ORDERED, that the Debtors, their officers, employees and agents are authorized to take
or refrain from taking such acts as are necessary and appropriate to implement and effectuate the
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relief granted in this Order without further order of the Bankruptcy Court; and it is further
ORDERED, that the Bankruptcy Court shall retain exclusive jurisdiction to
enforce the terms of this Order.
Dated:

UNITED STATES BAN RUPTCY JUDGE
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