Lexington Precision exclusive plan-filing period extended to Oct. 28

By Caroline Salls

Pittsburgh, July 31 - Lexington Precision Corp.'s exclusive period to file a plan of reorganization was extended to Oct. 28 from July 30 despite an objection from the company's official committee of unsecured creditors, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company's exclusive plan vote solicitation period was also extended to Dec. 27 from Oct. 28.

As previously reported, the committee objected to Lexington's exclusivity extension motion, arguing that a valuation trial must be held for any plan of reorganization to move forward "on an efficient and timely track."

The committee asked the court to put all plan matters on hold and schedule a valuation trial.

However, according to Thursday's order, the court believes the company should be able to begin serious plan negotiations no later than early September if the committee receives and can evaluate its requested documentation on financial projections and the company's continued reorganization progress by then.

"Negotiations should quickly test whether the debtors' financial projections and valuations can support the proposed reorganization plan or what changes or modifications or new plan will be required to give the debtors a realistic chance of emerging from Chapter 11," the court order said.

Lexington Precision, a New York-based manufacturer of rubber and metal components for the automobile and medical devices industries, filed for bankruptcy on April 2. Its Chapter 11 case number is 08-11153.

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