Stoneway Capital gets shorter-than-requested exclusivity extension

By Sarah Lizee

Olympia, Wash., Aug. 16 – Stoneway Capital Ltd. obtained a shorter-than-requested extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the court extended the plan filing period through Sept. 21 and the solicitation period through Nov. 22.

As previously reported, the company had asked for the court to extend the plan filing period through Oct. 4 and the solicitation period through Dec. 3.

The company said much of the time since it filed bankruptcy has been spent in litigation on multiple fronts with noteholders and UMB Bank, NA as indenture trustee and collateral agent for the company’s 10% senior secured notes due 2027.

“The litigation and various contested matters in which the debtors and the noteholder parties have been embroiled during these Chapter 11 cases have taken up a significant amount of the debtors’ time and attention and delayed their progress towards developing a confirmable Chapter 11 plan of reorganization,” the company said.

However, the company said that over the past few weeks there has been a dramatic shift in the approach of the parties, which has allowed the debtors to start to take significant steps toward achieving a broader compromise in the Chapter 11 cases.

A standstill stipulation has helped to provide the parties with a respite from the pending litigation in the cases and has provided the debtors with breathing room to try and formulate a plan, the company said.

The company said much work remains to be done, and the loss of exclusivity would dismantle the progress it has made thus far.

Stoneway is a privately held New Brunswick, Canada, company based in Buenos Aires and established in 2016 for the purpose of constructing, owning and operating power plants to provide electricity to the wholesale electricity market in Argentina through indirect subsidiaries. The company filed bankruptcy on April 7 under Chapter 11 case number 21-10646.

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