UPDATE 1-Wellman amends DIP credit agreement
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Aug 20 (Reuters) - Bankrupt polyester and plastics maker Wellman Inc WMANQ.OB said it amended its debtor-in-possession (DIP) credit agreement with its lenders and delayed its deadline to emerge from bankruptcy by two weeks.
In a regulatory filing, the company said it was amending certain provisions under its DIP credit agreement, whereby the deadline for approval of its disclosure statement has been extended to Aug. 29 from Aug. 15.
The deadline for emergence from bankruptcy has now moved to Oct. 20 from Oct. 6 and the deadline for obtaining an order confirming the company's reorganization plan has been pushed to Oct. 10 from Sept. 26, Wellman said.
The company currently has an outstanding liability of $116.9 million under its DIP credit agreement.
Wellman filed for protection under Chapter 11 of the U.S. Bankruptcy Code in February, citing deteriorating business conditions and substantial debt obligations.
The company also reported a July net loss of $12.5 million, compared with $6.8 million, a year ago. Net sales grew marginally to $86.2 million.
The company said results were hurt by a decrease in sales volumes at its chemical-based segment, which fell by about 24 million pounds due to liquidity constraints and higher reorganization costs. (Reporting by Shradhha Sharma in Bangalore; Editing by Amitha Rajan)
