Creditors Overwhelmingly Backed the Plan
By June, Plastic Suppliers had rolled out its combined Chapter 11 plan and disclosure statement, which impaired nonaffiliate unsecured creditors but offered them pro rata shares in a liquidation trust. The vote was resoundingly in favor: 32 of 33 ballots cast supported the plan, representing 99.5% of the class’s dollar value.
Some late tweaks were made after negotiations with the creditors’ committee and the U.S. Trustee’s Office, including the removal of certain injunction and release provisions. Judge Altenburg approved the revised plan following a hearing, marking the effective date for mid-September.
What Comes Next
The confirmation caps off one of the more notable green-business bankruptcies in recent years. While creditors will see recovery through liquidation proceeds, the outcome underscores the steep challenges compostable film producers face as markets tighten and regulatory shocks ripple worldwide.
Plastic Suppliers is represented by Stephen M. Packman and Douglas G. Leney of Archer & Greiner PC.
The U.S. Trustee’s Office is represented in-house by Martha R. Hildebrandt, Jeffrey M. Sponder, and Samantha S. Lieb.
The creditors’ committee is represented by Brett S. Moore, Kelly D. Curtin, and Michael F. Medved of Porzio Bromberg & Newman PC.
