Pliant first-lien noteholders ask court to adjourn disclosure hearing

By Jennifer Lanning Drey

Portland, Ore., July 14 - An informal committee of Pliant Corp.'s first-lien noteholders asked the U.S. Bankruptcy Court for the District of Delaware to adjourn the hearing on the disclosure statements for the competing plans of reorganization filed by the company and Apollo Management VII, LP, according to a Monday filing.

The committee wants to postpone the disclosure hearing by at least 60 days. The hearing is currently scheduled for July 24.

The creditors said the two plans are based on fundamentally different business models and valuation methodologies.

Accordingly, before the disclosure statements are sent to creditors, all parties must have up-to-date, independent valuations of the reorganized company, the committee said.

In addition, they said a market test and other analysis must be conducted to discover the appropriate interest rate for the new senior notes to be distributed to the first-lien noteholders under the Apollo plan.

That test will allow the parties and the court to determine whether the 8.75% interest rate that Apollo proposes for the senior notes is actually a market rate, they said.

The creditors also said more time is necessary to determine whether the Apollo plan violates the intercreditor agreement between the first-lien noteholders and the holders of Pliant's 11 1/8% senior secured notes due 2009, as well as other parties.

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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