Paddock asks for another exclusivity extension, this time by 65 days

By Sarah Lizee

Olympia, Wash., April 30 – Paddock Enterprises, LLC is seeking a 65-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the plan filing period through July 6 from May 3 and the solicitation period through Sept. 6 from July 5.

The company said it has reached an agreement in principle with its official committee of asbestos personal injury claimants and the future asbestos claimants for a consensual plan of reorganization that would resolve the debtor’s legacy asbestos-related liabilities.

The agreement was the culmination of the court-approved mediation process and provides that the total consideration to fund a section 524(g) trust on the effective date of a confirmed plan would be $610 million.

The agreement remains subject to definitive documentation and satisfaction of certain conditions.

“While the agreement marks a significant milestone in the Chapter 11 case, the process of implementing its terms and addressing the various issues that must be resolved in formulating a consensual plan requires extensive time and effort on the part of the debtor, the [claimants] and their respective professionals,” Paddock said in its motion.

A hearing is scheduled for June 9.

Paddock is a subsidiary of Perrysburg, Ohio-based bottle and jar manufacturer O-I Glass. Paddock filed bankruptcy on Jan. 6, 2020 under Chapter 11 case number 20-10028.

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