Ciena Capital asks court to adjourn disclosure statement hearing

By Lisa Kerner

Charlotte, N.C., Aug. 20 - Ciena Capital LLC asked the U.S. Bankruptcy Court for the Southern District of New York to adjourn the Aug. 25 hearing to approve the company's disclosure statement to Sept. 1.

Attorneys for Ciena said the debtors received comments regarding the disclosure statement and understands that the U.S. Small Business Administration plans to file a protective objection to the statement.

Ciena believes a brief adjournment will allow "consensual resolutions to be reached."

As previously reported, On Aug. 2 Ciena filed an amended plan of reorganization and disclosure statement. The amended plan includes False Claims Act and Small Business Administration settlements recently approved by the court.

Ciena said the disputes with the SBA and the False Claims Act litigation were two of the principal factors that drove the filing of its Chapter 11 bankruptcy case.

Ciena is a New York-based portfolio company for Allied Capital, a business development company that invests long-term debt and equity capital in middle market businesses. The company filed for bankruptcy on Sept. 30, 2008. Its Chapter 11 case number is 08-13783.

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