Wellman Files Ch. 11, Receives DIP Financing
March 10, 2008,
Polyester resin and fiber manufacturer Wellman, Inc. has filed for Chapter 11 bankruptcy in the Southern District of New York; the company received a commitment from existing 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 options. Since then, the $1.3 billion company decided to not issue a fourth quarter dividend, and also was delisted from the NYSE and moved to the OTC trading market.
Through the first three quarters of 2007, Wellman reported a loss of $66.1 million, compared to a loss of $68.7 million in the year-ago period.