UPDATE 1-Xerium seeks to restructure debt via bankruptcy
* Proposed plan to cut debt by $150 million
* Plan to be implemented through Chapter 11 bankruptcy
* Debt holders to get 82.6 pct in new co
* Current shareholders to get 17.4 pct in new co
March 2 (Reuters) - Troubled industrial textiles manufacturer Xerium Technologies Inc (XRM.N) said it began soliciting votes from lenders on a restructuring plan that would cut its debt by $150 million through a prearranged Chapter 11 bankruptcy filing.
Under the proposed plan, about $620 million of existing debt would be exchanged for $10 million in cash, $410 million in new term loans maturing in 2015 and about 82.6 percent of the company's common stock, Xerium said.
Current shareholders would retain a minority ownership interest of about 17.4 percent in the company and would receive warrants to buy up to an additional 10 percent of the common stock.
The solicitation period is currently set to expire on March 22.
Raleigh, North Carolina-based Xerium has 32 manufacturing facilities in 13 countries and over 3,370 employees worldwide, according to the company's website. (Reporting by Santosh Nadgir in Bangalore; Editing by Anne Pallivathuckal)
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