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

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

March 2017

March 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search