Werner seeks to amend forbearance agreement to reflect postponed bid procedures hearing

By Caroline Salls

Pittsburgh, March 12 - Werner Holding Co. (DE) Inc. requested court approval to amend its second forbearance agreement in light of the postponement of the hearing on the bidding procedures for the proposed sale of substantially all company assets to March 20, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the amended forbearance agreement, an order approving the bid procedures must be entered by March 20.

Under the current agreement, the deadline for approval was March 7.

If the company receives a committee offer for the assets by March 19 under which all obligations under its credit agreement and first-lien credit facility will be paid, some administrative expense claims will be assumed and an orderly wind-down of Werner's businesses will be funded, the company will enter into the sale agreement that constitutes the best or highest offer for the assets as the stalking horse agreement.

Approval for any stalking horse agreement must be obtained by March 20.

The company said the bid procedures hearing was postponed to allow it to continue negotiations with its two potential investor groups.

A hearing on the forbearance agreement amendment is scheduled for March 20.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006. Its Chapter 11 case number is 06-10578.

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