Wellman Files Ch. 11, Receives DIP Financing

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.

Wellman chairman and ceo Thomas Duff said actions taken to reduce cost "were not sufficient to offset the deterioration in business conditions and the cost of our substantial debt obligations." He said Chapter 11 will help the company operate without interruption while pursuing its "strategic alternative process."

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.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!