Millville, New Jersey-based glass container maker Glass Group Inc. is seeking to prolong its exclusive period for filing a Chapter 11 plan through 30 September 2005, in order to give it time to decide…
Millville, New Jersey-based glass container maker Glass Group Inc. is seeking to prolong its exclusive period for filing a Chapter 11 plan through 30 September 2005, in order to give it time to decide whether to liquidate or reorganize. In a court filing 27 June 2005, the company said it has taken into consideration a number of parties, including both strategic and financial buyers, and has begun to talk terms on a possible purchase agreement with several parties. The filing said that given the extraordinarily time-consuming nature of the ongoing marketing and sale process, the company has not yet determined whether a sale of its assets and business or a reorganization will enable it to maximize value for its estate, creditors and other stakeholders. Glass Group Inc. said it is in “constant communication” with the creditor committee, as well as a number of other interested parties, regarding the direction and outcome of its marketing and sale process and other major issues in the bankruptcy case, which began 28 February 2005. The company said it would be premature to file a plan before a decision is made on which alternative will realize the greatest value and is therefore seeking to extend its initial exclusive period for filing a plan, as well as its exclusive voting period, by three months. Companies operating under Chapter 11 protection must submit a plan to the court outlining how they will repay creditors. Exclusive periods prevent other parties from filing competing plans, enabling the company to keep control of its reorganization process. The initial plan filing period would have expired 28 June 2005; however, the company“s extension request automatically extends exclusivity until the US Bankruptcy Court in Wilmington, Delaware, holds a hearing on the matter 15 July 2005. Objections are due 8 July 2005. The company makes glass containers for the pharmaceutical, cosmetic, and food and beverage industries.