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Genmar granted extension to file reorganization plan - Trade Only Today

Genmar granted extension to file reorganization plan

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Genmar Holdings has until Nov. 4 to file its plans for reorganization, a judge in U.S. bankruptcy court in Minnesota has ruled.

In addition, the period in which Genmar has exclusive rights to obtain acceptances of such plans was extended to Jan. 3, 2010.

When Genmar filed for Chapter 11 bankruptcy protection in June, it was given until the end of September to file its reorganization plan. The company had asked the court for the right to file through Dec. 31 and to extend the period in which it may obtain acceptance of such plans through Feb. 28, 2010.

In the order granting the extension, the judge noted that only the Committee of Unsecured Creditors had objected to giving Genmar additional time to file.

When it filed its motion for the extension, Genmar said the case is large and complex, with 22 debtors filing separate petitions and schedules.

"Collectively, these debtors have in excess of 7,000 creditors, with hundreds, if not thousands, of executory contracts and leases," the court paper says. "Thus, the size of these cases alone establishes grounds for extending the exclusivity periods."

Also, court documents note, Genmar recently began to implement exit strategies, such as sale of assets, and these transactions will form the basis of any plan.

"These transactions are contemplated to close or solidify by the middle of December 2009," according to court documents.

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