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Gorham Paper and Tissue seeks further extension of exclusive periods
By Sarah Lizee
Olympia, Wash., June 2 – Gorham Paper and Tissue, LLC is seeking another extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
Specifically, the company asked the court to extend the plan filing period through Aug. 31 from June 2 and the solicitation period through Nov. 1 from Aug. 2.
The company said 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 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.
The company said the claims analysis, settlements and recoveries have allowed the debtors to evaluate their exit strategy and formulate a plan that is now substantially drafted and should be filed within the coming weeks.
A hearing is scheduled for June 16.
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, 2020 under Chapter 11 case number 20-12814.
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