US Wellman to exit bankruptcy this year - CEO

06 June 2008 22:47  [Source: ICIS news]

HOUSTON (ICIS news)--Bankrupt US polyethylene terephthalate (PET) producer Wellman expects to submit a reorganisation plan in June and emerge from bankruptcy later this year, the company's chief executive said on Friday.

Wellman filed for bankruptcy protection on 22 February. Initially it had planned to sell itself, with DAK Americas, Indorama and Reliance Industries being named as likely bidders.

Initially, Wellman was supposed to submit bidding procedures by the end of May, according to court documents.

Instead, the company has filed extensions that postponed the deadline to have the bidding procedures approved by the court.

In announcing one of the extensions, CEO Mark Ruday said that the company was considering reorganisation instead of an auction.

On Friday, Wellman said it received yet another extension for the bidding approval, pushing the deadline to 26 June.

Wellman said it would use the extra time to develop the terms of a reorganisation plan.

During the next week, Wellman plans to amend its debtor-in-possession (DIP) financing so it can file a reorganisation plan later this month, according to Ruday.

"Our first and second lien debt holders have each expressed interest in having a prominent role in our plan of reorganisation," he said in the statement.

Wellman is still under a 15 August deadline to either sell itself or successfully reorganise, the company said in court documents.

For more on PET visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Al Greenwood
+1 713 525 2645

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly