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Wellman amends DIP, revising bankruptcy process deadlines
By Sara Rosenberg
New York, Sept. 19 - Wellman Inc. amended its senior secured super-priority debtor-in-possession credit facility to replace all the prior milestones relating to its emergence from bankruptcy, according to an 8-K filed with the Securities and Exchange Commission Friday.
The company now has until Sept. 30 to enter into a backstop agreement that would provide $70 million of additional funding subject to certain limited conditions, until Oct. 7 to obtain an exit financing commitment, until Oct. 20 to have its disclosure statement order approved, until Oct. 31 to provide documentation in substantially final form for the exit financing, backstop commitment and any other financial accommodations, until Dec. 5 to get its plan confirmed by the court and until Dec. 10 to emerge from bankruptcy.
The amendment also reduces the maximum amount available under the credit facility to $120 million on Nov. 1 and eliminates any increase in the required minimum available liquidity so that it remains at $20 million.
Furthermore, the amendment revises EBITDA targets, considering only the operations of the company's PET Resins business, to $0 in September, $2 million in October, $2.5 million in November, $3 million in December, and $1.5 million in January 2009.
The amendment was completed on Sept. 15.
Deutsche Bank is the administrative agent on the deal.
Wellman is a Fort Mill, S.C., manufacturer and marketer of polyethylene terephthalate packaging resins, polyester staple fibers and recycled-based nylon engineering resin.
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