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SP Newsprint wins 90-day extension of exclusive period to file plan
By Jim Witters
Wilmington, Del., Feb. 7 - SP Newsprint Holdings LLC received a 90-day extension Tuesday of its exclusive periods for filing a Chapter 11 plan and soliciting acceptances of that plan.
During a hearing in the U.S. Bankruptcy Court for the District of Delaware, judge Christopher S. Sontchi granted the request over the objection of a representative of Alachua County, Fla.
Alachua County, which contracts with the debtor for recycling services, told the court that SP Newsprint had failed to meet its post-petition obligation to stay current by paying bills as they came due. Alachua County claims the debtors are $16,000 in arrears under its executory contract.
Sontchi said the primary question for an exclusivity extension concerns whether the plan is moving forward. The status of current bills is a factor, but a minor one, he said.
The judge suggested Alachua County file a motion to compel.
Sontchi's approval moves the deadline for filing a Chapter 11 plan to June 12 from March 14.
It extends the deadline for soliciting votes for the plan to Aug. 11 from May 13.
"The debtors intend to negotiate a process to market and sell their assets in the near future, and until completed, the debtors will not be able to adequately negotiate or propose a Chapter 11 plan. Once that process is completed, though, the debtors hope, to negotiate with their various creditor constituencies and to propose a consensual plan to resolve these cases," court documents state.
SP Newsprint, a Greenwich, Conn.-based newsprint producer, filed for bankruptcy on Nov. 15. The Chapter 11 case number is 11-13649.
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