Pliant granted court OK to enter into fee letters with potential exit facility lenders

By Caroline Salls

Pittsburgh, May 9 - Pliant Corp. obtained court approval to enter into fee letters with up to three potential exit facility lenders, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Lenders have provided proposals for between $175 million and $200 million in exit financing, but Pliant has not received any financing commitments.

Pliant will also reimburse the potential lenders for expenses incurred in evaluating, preparing and submitting their financing proposals and to provide indemnification in connection with the proposed financing.

The court set a $500,000 maximum for fee payments and a $700,000 maximum for deposits to the potential lenders.

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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