Advanced Glassfiber Yarns LLC is seeking a court-sanctioned 120-day extension to the company“s sole right to file a reorganization plan and solicit creditor support. The company has been in Chapter 1…
Advanced Glassfiber Yarns LLC is seeking a court-sanctioned 120-day extension to the company“s sole right to file a reorganization plan and solicit creditor support. The company has been in Chapter 11 bankruptcy since December 2002. According to court papers, the Advanced Glassfiber wants a new deadline of 7 August 2003 to file a plan and an extension until 6 October 2003 to lobby for creditor support. A hearing on the matter has not yet been scheduled in the U.S. Bankruptcy Court in Wilmington, Delaware. If the court rejects the company“s request, its exclusive period to file a plan would end 9 April 2003, and its exclusive creditor lobbying period would finish 9 June 2003. Under the Bankruptcy Code, companies in Chapter 11 must file a reorganization plan which provides detailed information on how creditors will be paid. According to court papers, Advanced Glassfiber said it has been working towards a reorganization plan with its lenders and an informal committee of noteholders, but because the company faces many issues, it needs more time to “further refine plan scenarios and to continue negotiations.” Court papers said Advanced Glassfiber has attempted to bring stability to its operations since it filed for Chapter 11 and has taken steps to work with vendors and customers. The company has also made timely submissions to the court regarding its financial condition. Advanced Glassfiber produces and supplies glass yarns to customers in Latin America, Asia, Canada, Europe and the U.S. The company said its Chapter 11 petition was brought about by a significant global economic downturn and inventory correction in the electronics market. An increase in international competition also lead to a substantial fall in sales and operating income during the company“s 2001 fiscal year, according to court papers. Sales and operating income fell by about 26% and 55%, respectively, between fiscal years 2000 and 2001. Although the Jefferson Holdings unit of Owens Corning owns 49% of Advanced Glassfiber, the Advanced Glassfiber bankruptcy case will not be jointly administered with the bankruptcy cases of either company, and does not involve asbestos-related claims, the filing said. Advanced Glassfiber filed for Chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Delaware, on 10 December 2002, listing total assets of USD 194.1 million and total debts of USD 409 million as of 31 October 2002. When the company filed for bankruptcy in December 2002, it had 1,205 employees. Since then, it has laid off 350 workers at three manufacturing plants, in Aiken, South Carolina, South Hill, Virginia, and Huntingdon, Pennsylvania, court papers said.