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Genmar seeks reorganization extension - Trade Only Today

Genmar seeks reorganization extension

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Genmar Holdings has filed for an extension to submit its plan of reorganization to emerge from Chapter 11, according to documents filed with bankruptcy court in Minnesota.

Genmar had been scheduled to file the plan by the end of September, but is asking the court for the right to file it through Dec. 31 and to extend the period in which it may obtain acceptance of such plans through Feb. 28, 2010.

"The reason for that is we're very close to the financing for the entire transaction to come out of the [Chapter] 11, and we are hoping to have something public before this week is out," Genmar chairman Irwin Jacobs told Soundings Trade Only.

"I feel very pleased, and I'm optimistic that we'll have something to say before the week is out relative to that," he added. "There's no sales included in that. For the most part, the entire plan is for Genmar to be intact."

In court filings, Genmar says 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, documents note, Genmar, which filed June 1 for Chapter 11, has recently begun 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.

A hearing on this motion is set for Sept. 24.

— Beth Rosenberg

b.rosenberg@tradeonlytoday.com

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