Wellman DIP loan exit commitment deadline extended to Tuesday

By Caroline Salls

Pittsburgh, Oct. 31 - Wellman, Inc. has entered into an amendment to its $225 million debtor-in-possession credit agreement that gives the company until Tuesday to obtain a binding, underwritten commitment for exit financing and/or an equity commitment, according to an 8-K filed with the Securities and Exchange Commission.

The company said that under the default provision of the credit agreement, it would have been in default on the DIP loan if it did not secure a binding, fully underwritten exit financing commitment letter by Oct. 27.

However, the amendment gives the company until Tuesday to obtain exit financing and/or an equity commitment acceptable to the lenders.

Wellman also now has until Tuesday to obtain court approval of its disclosure statement, extended from Oct. 27.

Wellman is a Fort Mill, S.C., polyester products manufacturer. It filed for bankruptcy on Feb. 22, 2008 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-10595.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.