Viskase aiming for prepackaged Chapter 11

New York, April 2 - Viskase Cos. Inc. said it is aiming to negotiate a prepackaged reorganization plan to be implemented through a Chapter 11 filing.

However, the Willowbrook, Ill. food packaging company added in a filing with the Securities and Exchange Commission that if it cannot reach agreement on a restructuring it will file for Chapter 11 anyway.

Viskase failed to pay the $163.1 million of principal and $8.4 million of interest due at the maturity of its 10¼% notes on Dec. 1, 2001.

It is now negotiating with a noteholders committee and other creditors.

On Feb. 28, 2002, Viskase paid the scheduled lease payment of $11.749 million to General Electric Capital Corp., its equipment lessor, according to the SEC filing.

GE Capital has agreed not to accelerate the equipment lease due to Viskase's late payment of basic rent due Nov. 1, 2001, its failure to meet the fixed charge coverage ratio for the quarters ending Sept. 30, 2001 and Dec. 31, 2001 and if it fails to meet the test for the quarter ending March 31, 2002, its failure to deliver required documents, and its failure to pay the 10¼% notes at maturity.

GE Capital has also agreed that it will not accelerate the lease if Viskase files for Chapter 11, although that waiver only runs until June 30, 2002.

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