Dan River creditors committee speaks against exclusivity extension, argues assets 'all but liquidated'

By Caroline Salls

Pittsburgh, Aug. 4 - Dan River Holdings, LLC's official committee of unsecured creditors objected to the company's proposed exclusivity extension, arguing that Dan River has already done all it can do to liquidate its assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, since the company has "all but liquidated" its assets, the only issues that still need to be addressed in its Chapter 11 bankruptcy case "can be more efficiently resolved through the plan process as opposed through an indefinite extension of time."

The committee said it also feels that the remaining tasks can be better handled by an independent liquidating trustee.

As previously reported, Dan River has asked the court to extend its exclusive plan-filing period to Nov. 18 from Aug. 18 and the solicitation period to Dec. 18 from Oct. 18.

According to the motion, the company has received an initial proposal from GHCL, Inc. for the purchase of a substantial amount of its assets.

As a result, the company said it needs more time to complete and present a proposed plan that incorporates the terms of the sale.

A hearing is scheduled for Aug. 6.

Dan River, a Danville, Va.-based textile company, filed for bankruptcy on April 20. Its Chapter 11 case number is 08-10726.

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