Pliant appeals exclusivity termination, requests stay pending outcome

By Caroline Salls

Pittsburgh, July 10 - Pliant Corp. has appealed the court orders terminating its exclusivity and denying its most recent exclusivity extension request, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Both orders were entered on July 2.

In addition, the company has asked the court to stay the exclusivity rulings pending the outcome of the appeals.

As previously reported, the company's official committee of unsecured creditors asked the court in May to terminate Pliant's exclusivity, but the company said the committee did not provide a basis for termination.

Pliant said in its stay motion that the court's ruling that the existence of a competing plan, which claims to generate more value for some creditors, is a basis for terminating exclusivity "irreparably changes the course of these Chapter 11 proceedings."

The company said it feels it has a substantial case on appeal.

Creditor Apollo Management VI, LP filed a competing plan in Pliant's case July 9.

Pliant, a Schaumburg, Ill.-based producer of value-added film and flexible packaging products, filed for bankruptcy on Feb. 11. Its Chapter 11 case number is 09-10443.

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