Pliant agrees with bondholders, shareholders to withdraw plan objections

By Caroline Salls

Pittsburgh, June 16 - Pliant Corp. has reached an agreement with representatives of its key classes of bondholders and shareholders under which all objections to confirmation of the company's plan of reorganization will be withdrawn, according to a company news release.

The agreement was reached with representatives of Pliant's first-lien, second-lien and senior subordinated noteholders as well as holders of existing preferred and common stock.

Terms of the agreement include a 0.225% increase in the interest rate of Pliant's existing first-lien notes, a $4 million cash consent fee for holders of the company's second-lien notes and a 1.5% increase in the allocation of the company's new preferred equity to holders of Pliant's existing senior subordinated notes.

The company said it will file an amended plan to reflect the updated agreement.

"Today's agreement is a significant step forward for Pliant's emergence from Chapter 11," president and chief executive officer Harold Bevis said in the release.

A plan of reorganization confirmation hearing is scheduled for June 23, and, if the plan is confirmed, the company expects to emerge from Chapter 11 shortly thereafter.

Pliant, a Schaumburg, Ill., producer of film and flexible packaging products, filed for bankruptcy on Jan. 3 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-10001.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.