Pliant gets final approval for $75 million in secured financing

Pliant Corp., a manufacturer of flexible packaging and plastic films, received final approval last week for $75 million in secured financing provided by some of its first-lien lenders.

The Schaumburg-based company's Chapter 11 petition in February was accompanied by a reorganization plan proposing to give all the new stock to the holders of $393 million in first-lien notes. Other creditors, including holders of $262 million in second- lien notes, would receive warrants to buy new stock.

Pliant also has $26.3 million in subordinated notes. The secured $167 million credit agreement is to be paid in full under the plan. The plan is supported by holders of more than two-thirds of the first-lien notes.

The new Chapter 11 case is Pliant's second. It confirmed a previous Chapter 11 reorganization plan in June 2006 that left the second-lien notes in place without reducing the amount of the debt. This time around, the plan almost wipes out the second-lien notes.

The petition listed assets of $689 million against debt of $1.03 billion as of Sept. 30. Revenue for the first nine months of 2008 was $881 million. In 2007, sales totaled $1.1 billion. Pliant operates 21 plants.

The new case is In re Pliant Corp., 09-10443, U.S. Bankruptcy Court, District of Delaware (Wilmington).