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.
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.
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