Home / Knowledge / News / Textiles / Wellman to pursue a plan of reorganization
Wellman to pursue a plan of reorganization
Jun '08
Wellman Inc announced that the Company has completed an amendment to its DIP Agreement that will allow it to pursue a stand-alone plan of reorganization.

The amended DIP Agreement requires that the Company adhere to the following timetable in completing its plan of reorganization:

• File, with the Bankruptcy Court, by June 25, 2008, (i) a plan of reorganization, (ii) a disclosure statement and (iii) a commitment of at least $70 million to backstop a rights offering which is reasonably acceptable to the DIP lenders,
• Obtain an indicative commitment for exit financing by July 14, 2008,
• Obtain a fully underwritten commitment for exit financing by July 30, 2008,
• Obtain Bankruptcy Court approval of the disclosure statement by August 4, 2008,
• Obtain an order confirming the plan of reorganization by September 15, 2008, and
• Complete the plan of reorganization and exit bankruptcy by September 25, 2008.

The Company has reached an understanding with the two largest holders of Wellman's second-lien debt to backstop an $80 million rights offering. This commitment is expected to be finalized before June 25, 2008. The Company has also made significant progress on the other elements of the plan of reorganization; however, there can be no assurances that the Company will be able to complete the plan of reorganization.

Mark Ruday, Wellman's Chief Executive Officer, stated, "We look forward to working with the backstop parties and our other stakeholders to complete the plan of reorganization and emerge from bankruptcy with a strong financial position.

This will allow us to capture more profitable growth opportunities in PET resins as well as in our other businesses. We appreciate the time and effort invested by all of our stakeholders and look forward to working with them to maximize the value of the Company."

Wellman Inc

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search