Pliant creditor granted access to company information

By Caroline Salls

Pittsburgh, March 5 - Pliant Corp. creditor Apollo Management VII, LP obtained court approval to examine documents related to the creditor's efforts to propose an alternate plan of reorganization and alternate debtor-in-possession financing, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, Pliant has proposed a plan of reorganization that transfers ownership of the company to its current management and a group of senior-lien creditors and pays essentially nothing to junior-lien and unsecured creditors.

Apollo said it believes it can co-sponsor a plan that would deliver significantly more value to Pliant's creditors.

In addition, Apollo said it is interested in making a proposal for permanent, non-priming DIP financing on superior terms to Pliant's current interim financing, "which bestows control over these cases on the very same creditor group that, alongside management, would acquire the debtors through the lockup plan."

In order to develop its plan and alternate DIP facility, Apollo said it needs access to basic non-public information about Pliant.

However, even though the creditor previously entered into a confidentiality agreement with Pliant, Apollo said the company is now refusing to provide access to the requested information because the current DIP lenders are adamantly opposed to Pliant sharing information with Apollo.

Apollo said the current DIP lenders have threatened to terminate Pliant's lock-up agreement if it provides information needed to formulate the alternate plan.

Pliant, a Schaumburg, Ill.-based producer of value-added film and flexible packaging products, filed for bankruptcy on Feb. 11. Its Chapter 11 case number is 09-10443.

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