Radnor hearing on exclusivity extension request continued to Feb. 21

By Rebecca Melvin

New York, Feb. 11 - Radnor Holdings Corp.'s request for an extension of the exclusivity period in which it can solicit votes on its plan of liquidation was continued to Feb. 21, according to a legal source.

When Radnor asked for the extension in January it told the U.S. Bankruptcy Court for the District of Delaware that it needed more time to solicit votes and negotiate terms of the plan with the purchaser of its assets and other interested parties. Tennenbaum Capital Partners LLC bought substantially all of Radnor's assets through affiliate TR Acquisition Co. Inc. at the end of 2006.

Issues being negotiated included a claims bar date and a resolution of the amount of fees requested by Radnor's official committee of unsecured creditors, which disbanded in November due to lack of interest.

Tennenbaum Capital, agent for secured creditors including Special Value Opportunities Fund LLC and Special Value Expansion Fund LLC, and TR Acquisition asked the court to deny Radnor's extension request on the grounds that no progress has been made since the last extension.

Radnor's plan and related disclosure statement were initially filed on April 30, 2007.

Tennenbaum also said that the extra time is excessive and would harm Tennenbaum, the only remaining creditor. It also says that the case is no longer large or complex since the sale of substantially all assets occurred 14 months ago.

Radnor, a Radnor, Pa.-based foam cup, container and expandable polystyrene bead manufacturer, filed for bankruptcy on Aug. 21, 2006. Its Chapter 11 case number is 06-10894.

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