Pliant unsecured creditors committee objects to lack of information in disclosure statement

By Caroline Salls

Pittsburgh, April 12 - Pliant Corp.'s official committee of unsecured creditors objected to the disclosure statement for the company's plan of reorganization for lack of information amid a rushed attempt to confirm the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, the company, under the direction of controlling equity holder JP Morgan Partners, LLC, is rushing to confirm the plan before the committee and other parties in interest can analyze the company's prospect for a successful reorganization.

In the rushed process, the committee said the company "glosses over" or ignores several significant aspects of the plan, including the treatment of company insiders.

In addition, the committee said the plan includes several contingencies that "force creditors to vote on a plan that may take several different forms if confirmed," and leaving creditors unable to determine which version of the plan they are voting on.

A hearing on approval of the disclosure statement is scheduled for April 18.

Pliant, a Schaumburg, Ill., producer of film and flexible packaging products, filed for bankruptcy on Jan. 3. Its Chapter 11 case number is 06-10001.

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