Wellman administrative, collateral agent objects to company's motion to extend exclusivity past Sept. 30

By Jennifer Lanning Drey

Portland, Ore., July 29 - Wellman, Inc.'s administrative and collateral agent the Bank of New York objected to the company's motion for a second exclusivity extension, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

In the filing, Bank of New York said Wellman's desire to maintain exclusivity beyond Sept. 30 should be "the least of its worries" because the company would be in default of its DIP credit agreement if it is unable to confirm a plan by that date.

"The debtors have their chance. If the debtors are unable to confirm the plan by Sept. 30, 2008, BNY and other proper parties in interest should be permitted to attempt to consummate what the debtors could not," Bank of New York said in the objection.

As previously reported, Wellman wants to extend its exclusive plan-filing period to Oct. 15 from July 31 and its solicitation period to Dec. 15 from Sept. 30.

A hearing on Wellman's motion to extend its exclusivity is scheduled for July 31.

Wellman, a Fort Mill, S.C., polyester products manufacturer, filed for bankruptcy on Feb. 22. Its Chapter 11 case number is 08-10595.

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