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Klausner Lumber One gets third extension of exclusive plan periods
By Sarah Lizee
Olympia, Wash., March 25 – Klausner Lumber One, LLC secured a third extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.
Specifically, the court extended the plan filing period through June 28 from Feb. 28 and the solicitation period through Sept. 1 from May 1.
The company said in its motion that it has been working to negotiate a settlement with the WARN Act plaintiffs, which, if successful, would be implemented through the plan.
The debtor engaged in a mediation with the WARN Act plaintiffs, the official committee of unsecured creditors and former Judge Kevin Gross.
Klausner anticipates being able to reach an amicable resolution and filing a motion to approve the settlement within the next couple of weeks. However, given that any settlement involves the resolution of a class action, there are certain timing issues that need to be factored in for purposes of consummating the settlement, Klausner said.
The debtor said it has also been working closely with the creditors’ committee in preparing a joint Chapter 11 plan, and its constituents are in the process of finalizing negotiations in connection with the plan and the WARN litigation and expect to be resolved on all fronts within the next week or so.
“Though the parties are working diligently in reaching a settlement that would be effectuated through the plan with the Warn Act plaintiffs, additional time is needed to be able to facilitate the consummation of that settlement,” the company said in the motion.
Klausner is a Live Oak, Fla.-based lumber company. The company filed bankruptcy on April 30, 2020 under Chapter 11 case number 20-11033.
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