Louisiana Pellets wants extension of exclusive period to file, solicit votes on reorganization

By Sheri Kasprzak

New York, May 24 – Louisiana Pellets, Inc. requested an extension for its exclusive periods to file and solicit votes on its reorganization plan, according to a motion filed Tuesday in the U.S. Bankruptcy Court for the Western District of Louisiana.

The company will, if approved, have until Sept. 15 to file its plan and Nov. 14 to obtain votes on the reorganization plan, extended from June 17 and Aug. 16, respectively, according to the motion.

Louisiana Pellets said in its motion that its only source of revenue on a post-petition basis is a pellet sale agreement with E.ON plc UK, with which the company is now engaged in litigation.

“The first and ‘traditional’ factor weigh in favor of an extension,” said the motion.

“Debtors operate a complex manufacturing facility with an extensive network of suppliers and contractors. Debtors have an extensive unsecured creditor constituency, a variety of Private Works Act lienholders and a large secured debt facility. The complexity of the case is intensified by the need to restart restore production to the facility and the substantial dispute with E.ON.”

Based in Urania, La., Louisiana Pellets manufactures wood pellets. The company filed for bankruptcy on Feb. 18 under Chapter 11 case number 16-80162.

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