Lexington Precision pre-bankruptcy lenders object to disclosure statement

By Jennifer Lanning Drey

Portland, Ore., Dec. 1 - The agents for Lexington Precision Corp.'s pre-bankruptcy senior lenders objected to the company's disclosure statement for its plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

In the filing, revolver agent CapitalSource Finance LLC and term loan agent CSE Mortgage LLC said the disclosure statement should not be approved because the plan is not feasible with only $35 million of exit financing.

"Unless and until the debtors obtain a commitment for exit financing, embarking on the confirmation process is a fruitless endeavor that will result in a mountain of costs that should be avoided," they said.

The agents also claimed the disclosure statement does not contain adequate information regarding the company's prospects for obtaining exit financing and on the critical nature of the financing.

The disclosure hearing is scheduled for Dec. 10.

Lexington Precision, a New York-based manufacturer of rubber and metal components for the automobile and medical devices industries, filed for bankruptcy on April 2, 2008. Its Chapter 11 case number is 08-11153.

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