CalPlant secures another lengthy extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., June 13 – CalPlant I, LLC and CalPlant I Holdco, LLC secured a 180-day extension of their exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the court extended the plan filing period through Nov. 29 from June 2 and the solicitation period through Jan. 27, 2023 from Aug. 1.

The debtors said that during the roughly four months since the court entered the original exclusivity order, the debtors have continued to take steps to stabilize and optimize their operations, while also focusing on a path toward a successful reorganization.

In March, the debtors worked with consenting creditors to secure an incremental $15 million in debtor-in-possession financing, which is expected to provide enough working capital at least through late September, the debtors’ target bid deadline.

In addition, in April, the debtors negotiated an amendment to their plan support agreement, under which holders of a majority of the 2019 subordinated bonds became consenting holders under the PSA.

CalPlant said the debtors have continued to make operational improvements to their manufacturing plant, including the removal, repair and reinstallation of both of the plant’s refiners.

The debtors also continue to collaborate with their chief equipment supplier, Siempelkamp Maschinen-und Anlagenbau GmbH (SICO), to optimize the plant’s production process.

The debtors said postponing their marketing process until SICO design changes and other improvements are made in order to stabilize operations would maximize value.

“In light of this continued and significant progress, the ongoing communication with and support of their key case constituents, and the lack of any other viable restructuring strategy, the debtors believe that continuing to maintain exclusivity to file and solicit a plan is reasonable and appropriate,” the debtors said in their motion.

Willows, Calif.-based CalPlant manufactures sustainably sourced building products. The company filed Chapter 11 bankruptcy on Oct. 5, 2021 under case number 21-11302.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.