Budd wins additional four months to formulate, solicit Chapter 11 plan

By Kali Hays

New York, March 16 – Budd Co., Inc. received a third extension of its exclusive Chapter 11 plan filing and solicitation periods from the U.S. Bankruptcy Court for the Northern District of Illinois, under an order filed Monday.

The company’s filing period is extended through July 31 from March 31 and its solicitation period through Sept. 30, 2015 from May 30.

As previously reported, Budd said that it has made “significant progress” since filing for bankruptcy in its investigation of possible claims against its parent company ThyssenKrupp North America, Inc. and in negotiations with its retiree and asbestos committees.

“Notwithstanding this progress, it remains premature at this point in time for the debtor (or any other party in interest) to file or pursue confirmation of a Chapter 11 plan in this case,” the motion stated.

Budd said that it believes it will continue to make significant progress in the next three to four months, allowing it to develop a “hopefully consensual” exit strategy.

A case status conference is set for July 10.

Chicago-based Budd made stainless steel rail cars. The company filed for bankruptcy on March 31, 2014 under Chapter 11 case number 14-11873.

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