Xerium Technologies, Inc. and 15 Affiliates File Chapter 11 to Consummate Pre-packaged Financial Restructuring
Early this morning, March 30, 2010, Xerium Technologies, Inc. and 15 affiliated debtors filed Chapter 11 in Delaware. The petition lists total assets exceeding $1 billion, and liabilities between $500 million and $1 billion. The main case number is 10-11031 and Judge Kevin J. Carey has been assigned to the case.
According to the declaration in support of the filing made by Stephen Light, CEO and Chairman of the Board of Xerium Technologies, the debtors are “a leading global manufacturer and supplier of two categories of consumable products used in the production of paper products and roll technology products installed in paper-making machines.” Mr. Light’s declaration points to “decreased demand for [paper producers’] products . . . due to the increasing prevalence of electronic media” as part of the reason for the filing. “The drop in global demand for paper products has resulted in a surplus of paper inventory at paper-making companies and corresponding curtailments and idling of paper-making machines. In addition, as Xerium’s customers have experienced difficulty raising funds in the capital markets, customers’ demands for Xerium’s products and services has [sic] necessarily contracted.”
On March 2, 2010, the debtors commenced a pre-petition solicitation of votes in favor of a pre-packaged plan and disclosure statement. Mr. Light’s declaration indicates that the plan has been overwhelmingly supported by the two classes entitled to vote. Accordingly, the debtors will be seeking to exit bankruptcy in mid-May, 2010.
