Wellman Moves On Reorganization

A bankruptcy court has approved a disclosure statement by polyester maker Wellman, paving the way for lien holders to vote on the company's Chapter 11 reorganization plan. Under the plan, these creditors will receive equity in Wellman. They will also receive proceeds from the sale of its Darlington, S.C., polyethylene terephthalate (PET) and polyester fiber plant. Should the plan fall through, Wellman will liquidate its remaining PET facility in Hancock, Miss. Last month, Wellman sold its Johnsonville, S.C., polyester recycling plant to a group led by the private equity firm J. H. Whitney.