Powermate granted four-month exclusivity extension

By Caroline Salls

Pittsburgh, Dec. 8 - Powermate Corp. obtained an extension to its exclusive periods to file a plan of liquidation and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company's exclusive plan-filing period was extended to March 12 from Nov. 12 and the solicitation period to May 12, 2009 from Jan. 12.

Powermate said it has not had time to formulate a plan because it has been focusing on winding down its business and negotiating a settlement with Sun Powermate, LLC, York Mezzanine Partners, LP and its official committee of unsecured creditors regarding the potential release of liens on the company's assets.

The company said the settlement is "nothing less than a prerequisite to the process of negotiating, drafting and prosecuting a plan."

Powermate, an Aurora, Ill.-based manufacturer of portable and standby electric generators, air compressors, air tools, pressure washers and accessories, filed for bankruptcy on March 17, 2008. Its Chapter 11 case number is 08-10498.

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