Bankruptcy Judge Clears Rexene to Leave Chapter 11
DALLAS (AP) _ A U.S. bankruptcy judge approved Rexene Corp.’s reorganization plan Wednesday and the plastics maker said it expected to emerge from Chapter 11 protection later this summer.
Judge Helen Balick formalized the tentative approval she gave Tuesday to the creditors’ vote on the restructuring.
Rexene entered Chapter 11 last October after missing a payment on unsecured debt. The company has not set a precise time to emerge from bankruptcy since it must first settle two claims, one involving a 1987 stock bonus plan that is the subject of a class action suit before U.S. District Judge Lucius Bunton.
The judge is expected to make a ruling on the suit next Monday. The second claim, brought by dissident shareholders, will be reviewed by Balick July 18.
The company said it had received a commitment from Transamerica Business Credit Corp. for $35 million in working capital once it emerges from bankruptcy.
Rexene originally filed a ″prepackaged″ debt restructuring plan, one already approved by most creditors. But that was modified in April to allow the company to reverse $6.8 million in interest it had accrued after entering Chapter 11.
Dallas-based Rexene makes thermoplastic resins, film and other petrochemical-based products used in items ranging from plastic milk cartons to disposable diapers. It operates a large plant in Odessa.