Budd gets one-month exclusivity extension despite six-month request

By Kali Hays

New York, July 28 – Budd Co., Inc. received a one-month extension of its exclusive plan of liquidation filing and acceptance periods, according to a July 25 order with the U.S. Bankruptcy Court for the Northern District of Illinois.

The court ordered Budd’s exclusive filing period extended through Aug. 29 from July 29 and its solicitation period through Oct. 28 from Sept. 29.

As previously reported, the company sought a 180-day extension of the exclusive periods to continue negotiations regarding creditor treatment under a plan of liquidation and asked that its filing period be extended through Jan. 16, 2015 and its solicitation period through March 30, 2015.

Budd said the extension is required in order for the company to “develop a workable plan that addresses the myriad unresolved complex legal and factual issues in this case.”

Among these unresolved issues is a pending settlement motion over pension benefits that could eliminate $300 million in claims, benefit negotiations with Budd’s retiree committee and the allowance and treatment of claims by environmental and asbestos claimants, according to the motion.

Chicago-based Budd made stainless steel rail cars. The company filed bankruptcy on March 31 under Chapter 11 case number 14-11873.

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