Wellman files Ch. 11, receives DIP financing
February 25, 2008,
Fort Mill, S.C. – Polyester resin and fiber manufacturer Wellman, Inc. has filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code for the Southern District of New York; the company received a commitment from its existing revolving credit facility lenders for up to $225 million in debtor-in-possession (DIP) financing.
Duff was referring to Wellman’s October 2007 hiring of Lazard Freres & Co. to explore strategic options. Since then, the $1.3 billion company decided to not issue a fourth-quarter dividend, was delisted from the NYSE and moved to the OTC trading market.;
Through the first three quarters of 2007, the company reported a loss of $66.1 million, compared to a loss of $68.7 million in the year-ago period. The company’s fourth-quarter results have not been released; March 7 was the date previously set for that report.