Bankrupt Wellman continues with reorganisation

19 June 2008 16:12  [Source: ICIS news]

HOUSTON (ICIS news)--Bankrupt US firm Wellman said it has completed an amendment to its debtor-in-possession (DIP) financing, which would allow it to pursue a reorganisation plan, the polyethylene terephthalate (PET) producer said on Thursday.

Under the amendment, Wellman had a 30 July deadline to receive a fully underwritten commitment for exit financing, the company said.

By 15 September, Wellman had to have a court order confirming the reorganisation plan, the company said.

By 25 September, Wellman should emerge from bankruptcy protection.

In other news, Wellman had reached an understanding with its two largest holders of second-lien debt, the company said, adding under it, the holders would agree to backstop an $80m rights offering.

The commitment should be finalised before 25 June, it said. 

"We look forward to working with the backstop parties and our other stakeholders to complete the plan of reorganisation and emerge from bankruptcy with a strong financial position," according to a statement by Mark Ruday, Wellman's chief executive.

"This will allow us to capture more profitable growth opportunities in PET resins as well as in our other businesses," Ruday said.

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By: Al Greenwood
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