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Gorham Paper and Tissue gets 90-day extension of exclusive periods
By Sarah Lizee
Olympia, Wash., March 11 – Gorham Paper and Tissue, LLC secured a 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.
Specifically, the court extended the plan filing period through June 2 and the solicitation period through Aug. 2.
The company said in its motion that it has been working with interested parties including its official committee of unsecured creditors and Zohar III, Ltd. regarding a potential Chapter 11 plan of liquidation to effectuate the debtors’ exit strategy and ensure that payments can be made to the remaining creditors of the estates.
Those efforts, most recently, culminated with the settlement among the debtors, the committee, Zohar III and Ankura Trust Co., LLC, which provides for an infusion of more than $1 million of cash back into the estates to fund the debtors’ wind-down and exit strategy.
The company said it has also engaged in significant efforts to collect outstanding accounts receivable, evaluate potential preference claims and resolve administrative expense and other claims against the estates – all in an effort to reach a consensual exit plan.
Gorham said the extension is intended to preserve the value of the debtors’ significant efforts so far, while also affording the debtors a reasonable amount of additional time to continue executing their Chapter 11 strategy without interference from a competing plan.
Gorham, N.H.-based Gorham Paper and Tissue manufactures towel and tissue rolls for at-home and away-from-home markets. The company filed bankruptcy on Nov. 4 under Chapter 11 case number 20-12814.
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