Wellman, Inc. Files Chapter 11 Petition
Fort Mill, South Carolina, USA, 22 February 2008 -- Wellman, Inc. ([OTC]: WMAN.OB) today announced that it and certain of its subsidiaries filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code for the Southern District of New York. The company intends to work with its constituencies to maximize the value generation for all of its stakeholders.
Thomas Duff, Wellman's chairman and chief executive officer stated, "Although the company has taken numerous steps to reduce its debt and strengthen its balance sheet through the disposition of certain businesses, headcount reductions, and other cost reductions, these actions were not sufficient to offset the deterioration in business conditions and the cost of our substantial debt obligations. Filing for Chapter 11 allows us to continue operating our business without interruption while continuing to pursue our previously announced strategic alternative process."
In conjunction with the filing, the company has received a commitment from its existing Revolving Credit Facility lenders for up to USD 225 million in debtor-in-possession (DIP) financing. Upon Court approval, the DIP financing, combined with cash from operations, will be used to fund post-petition operating expenses, including employee and supplier obligations.
"I would like to thank our customers and vendors for their continued support during this process," Duff added. "We also appreciate the ongoing loyalty and support of our employees, whose dedication and hard work are critical to our success and to the future of the company. Our management team is committed to making this reorganization successful and leading Wellman toward a bright future."
For access to Court documents and other general information about the Chapter 11 case, visit www.kccllc.net/wellman.
Wellman, Inc. manufactures and markets high-quality polyester products, including polyethylene terephthalate (PET) packaging resins and polyester fibers.