Orchids Paper Products creditors committee objects to plan extension

By Caroline Salls

Pittsburgh, Sept. 5 – Orchids Paper Products Co.’s official committee of unsecured creditors objected to the company’s proposed extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The committee said it believes that “given the current posture of these Chapter 11 cases,” the Orchids Paper debtors should be required to file a plan within seven days of a hearing on the motion for approval of a settlement between the committee, Orchids Investment and Ankura Trust Co., LLC, or by Sept. 17.

If no plan is filed by that date, the committee said exclusivity should be terminated on Sept. 17 so the creditor group can file a plan of liquidation for the Orchids Paper cases.

According to the objection, the company has drafted a plan, and the committee has provided comments on that plan, with the only open issues from the committee’s perspective being the scope of proposed third-party releases and preservation of potential claims against Orchids Papers’ officers and directors.

“At this stage of these Chapter 11 cases, there is no reason to further delay the filing of a plan and there is no cause to extend exclusivity as requested by the debtors,” the committee said.

A hearing is scheduled for Sept. 10.

Orchids, a Brentwood, Tenn.-based maker of consumer tissue products, filed for bankruptcy on April 1. The Chapter 11 case number is 19-10729.

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