Advanced Glassfiber Yarns LLC has asked for another extension to the exclusive period in which it may solicit creditor support for its Chapter 11 plan, according to court filings. The extension reques…
Advanced Glassfiber Yarns LLC has asked for another extension to the exclusive period in which it may solicit creditor support for its Chapter 11 plan, according to court filings. The extension request is the second in two months. The company filed a request on 3 February 2004 with Judge Judith K. Fitzgerald of U.S. Bankruptcy Court in Wilmington, Delaware, seeking another 40 days in which to get creditor approval for its USD 180 million plan to emerge from bankruptcy. The current exclusive solicitation period, which Fitzgerald approved 20 January 2004, expires 24 February 2004. Advanced Glassfiber says it wants an extension to allow it to “avoid the distraction” that would occur if other parties interested in the case were to file alternative reorganization plans. “This risk is especially acute,” Advanced Glassfiber said, because the company is very close to confirming its plan. Advanced Glassfiber filed a reorganization plan and disclosure statement 23 June 2003, and the court approved the disclosure statement 22 September 2003. According to court filings, Advanced Glassfiber proposes in its plan to exchange USD 184 million of secured borrowings that the company owed before its bankruptcy filing for new secured debt of USD 120 million, with the remainder exchanged for a 70% share of common equity in the reorganized company. Also under the plan, USD 163 million that the company owes its senior subordinated noteholders, in addition to approximately USD 4 million in general unsecured trade liabilities, would be exchanged for a 15% share of common equity in the reorganized company and a distribution of warrants, court filings said. Fitzgerald is scheduled to rule on both the confirmation of the turnaround plan and the extension request on 8 March 2004. Advanced Glassfiber makes and supplies glass yarns to clients in Latin America, Asia, Canada, Europe and the U.S. The company said a significant global economic downturn and inventory correction in the electronics market lead to its Chapter 11 petition. The company filed for Chapter 11 protection 31 October 2002, listing assets of USD 194.1 million and debts of USD 409 million.