Pliant requests court OK to pay fees, expenses to potential exit facility lenders

By Caroline Salls

Pittsburgh, April 28 - Pliant Corp. requested court approval to enter into fee letters with up to three potential exit facility lenders, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Lenders have provided proposals for between $175 million and $200 million in exit financing, but Pliant has not received any financing commitments, the filing said.

Pliant will also reimburse the potential lenders for expenses incurred in evaluating, preparing and submitting their financing proposals and to provide indemnification in connection with the proposed financing.

The company said it is still negotiating the fees with the potential lenders, but it does not expect to have to pay more than $500,000 in fees, plus no more than $700,000 in expense deposits.

A hearing is scheduled for May 5.

Pliant, a Schaumburg, Ill., producer of film and flexible packaging products, filed for bankruptcy on Jan. 3. Its Chapter 11 case number is 06-10001.

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