Chesapeake requests three-month exclusivity extension to allow asset sale to close

By Jennifer Lanning Drey

Portland, Ore., April 6 - Chesapeake Corp. requested a three-month extension to its exclusive periods to file a plan of liquidation and solicit votes on the plan, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Chesapeake wants to extend the exclusive plan-filing period to July 27 from April 28 and the solicitation period to Sept. 25 from June 27.

The company said although it continues to work diligently to close the court-approved sale of substantially all of its assets to affiliates of Irving Place Capital Management, LP and Oaktree Capital Management, LP, the sale has not yet closed.

Chesapeake said the sale must close before it will have the information necessary to determine how to proceed with the Chapter 11 case to maximize the potential return to stakeholders.

Chesapeake, a Richmond, Va.-based manufacturer and supplier of specialty paperboard packaging products, filed for bankruptcy on Dec. 29. Its Chapter 11 case number is 08-36642.

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