Brayman Precast, LLC won final court approval on August 27, 2026, for a $2.5 million debtor-in-possession financing facility to support its operations during its Subchapter V case. The order records an $800,000 borrowing under the interim authorization and makes an additional $1.7 million available. Those figures distinguish money already borrowed from further borrowing capacity; the order does not establish that the full facility was funded. Final financing order
The financing addresses a liquidity shortage that chief restructuring officer Adam Cohen attributed to threatened litigation, investigation costs and declining contract awards following a fatal parking-garage collapse in Philadelphia. Brayman entered bankruptcy seeking to maintain operations while considering a sale or reorganization. The financing approval supplies working capital under court-approved terms; it does not approve either exit. First-day declaration
U.S. Bankruptcy Court for the Western District of Pennsylvania
Case Number
26-22052
Petition Date
July 24, 2026
Proceeding
Chapter 11, Subchapter V
Case Snapshot
The court’s case-management order identifies the debtor and confirms its petition date and Subchapter V election. Case-management order
What the $2.5 million financing provides
The final order authorizes borrowing and cash-collateral use to fund approved expenses. It limits loan proceeds to uses permitted by the loan documents and budgeted expenses that cash collateral is insufficient to satisfy, subject to permitted variances. The court found that Brayman lacked sufficient cash to finance ongoing operations and could not obtain sufficient unsecured administrative credit. Final financing order
Term
Final approved treatment
Maximum principal
$2.5 million
Initial borrowing
$800,000 borrowed under the interim order
Additional availability
$1.7 million available upon final approval
Ordinary interest
U.S. prime rate plus 2% annually; payable in cash, in kind, or a combination at the debtor’s option
Commitment fee
$25,000, earned upon final approval and payable under the approved budget
Exit fee
2.5% of principal actually advanced and outstanding when the obligations are paid in full, excluding repayment through the specified credit-bid transaction
Priority
Superpriority administrative claim and liens, subject to the carve-out, permitted priority liens and other order terms
Maturity
Generally 12 months after the petition date, subject to extension by agreement and earlier specified events
Approved Financing Terms
These terms come from the final order, including its definitions of maturity and termination. Earlier maturity can follow an acceptable plan’s effective date or dismissal or conversion without simultaneous repayment. Acceleration and termination of commitments can also end the facility before its scheduled maturity. Final financing order
The financing’s practical value is access to liquidity while Brayman develops an exit. Its maximum principal is not an unrestricted cash balance: borrowing, spending and repayment remain governed by the approved documents. Interest paid in kind also remains an obligation, even when the debtor elects to defer the cash payment. Final financing order
Why Brayman sought bankruptcy protection
Brayman manufactures precast concrete products for transportation, marine, industrial, commercial and public-infrastructure projects. Its products include bridge deck panels, structural bridge components, stairs and box culverts. Cohen’s first-day declaration identifies its manufacturing facility in Saxonburg, Pennsylvania, and says Stephen Muck wholly owns the company. First-day declaration
According to Cohen, a portion of a parking garage under construction for the Children’s Hospital of Philadelphia collapsed on April 8, 2026, killing three construction workers. He described Brayman as one of multiple entities that provided services in connection with the incident and said the incident remained under investigation when the declaration was filed. That account does not establish responsibility for the collapse. First-day declaration
Cohen said Brayman subsequently received correspondence threatening litigation, incurred costs for professionals assisting its internal investigation, and experienced fewer contract awards amid media coverage. He attributed the resulting liquidity erosion and uncertainty over future business to the decision that an out-of-court solution was unlikely. These are the debtor’s explanations for its filing. First-day declaration
At filing, Cohen reported approximately $161,509 of cash against payroll estimated at $147,000 every two weeks, alongside vendor, subcontractor, insurance and other operating obligations. He warned that losing access to financing could halt operations and put approximately 40 jobs at risk. Those petition-date figures explain the urgency of financing; they are not a current cash balance or employment count. First-day declaration
Insider financing and the path to a plan
Cohen’s first-day declaration identified BPC-DIP Lender, LLC and participating lenders Brayman Holding Company, Inc., Brayman Construction Company and Stephen M. Muck as the proposed financing sources. He said Brayman approached three potential lenders and obtained no unsecured financing offer or more favorable alternative. Muck’s participation links the financing to the debtor’s owner. First-day declaration
In his August 26 declaration, Cohen said preparation of the schedules identified payments to and from insiders during the year before bankruptcy. He reported that the lenders agreed to delete certain release provisions from the proposed final order after discussions with the debtor’s professionals. That declaration records the negotiations; it does not establish liability arising from the insider payments. Second Cohen declaration
Cohen described the facility as funding efforts to preserve operations, maintain insurance, pursue insurance recoveries and seek agreement on a global restructuring. As of that declaration, the debtor was still developing potential exit strategies to embody in a plan. Second Cohen declaration
The case-management order sets October 22, 2026, as the deadline to file a proposed reorganization plan. The next substantive question is how that plan would address creditor claims and repay the financing while preserving value from the business and any insurance recoveries. Financing approval alone does not answer those recovery questions. Case-management order
Sources
Final financing order /documents/111034b3-ef2d-4282-af10-48e516a3391a/
Case-management order /documents/2c3c8504-bf46-4abf-921a-43662596dc98/
Second Cohen declaration /documents/3bae1156-0158-4bfc-9f0c-7e856a8ffaa9/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.