RBX reorganization could take months

ROANOKE, Va. (Feb. 1)—It could be take several months before a reorganization plan is in place for RBX Corp., the Roanoke-based rubber and plastic foam manufacturer that sought Chapter 11 bankruptcy protection in December. The company is in the process of reorganizing, but no substantial developments have been made since its operating subsidiaries filed for Chapter 11 Dec. 7 in U.S. Bankruptcy Court for the District of Delaware, an RBX spokesman said. The firm´s creditors, some of whom forced RBX´s hand by filing an involuntary bankruptcy petition Dec. 5, met for the first time Jan. 26 in Wilmington, Del., to discuss the plight and future of the company. No firm decisions were made at the meeting, the type of which is "fairly routine" in cases like this, the spokesman said. During the reorganization, the company will decide on how best to handle its financial problems, most notably the overwhelming debt its cash flow couldn´t support. A large portion of the debt is $100 million in senior subordinated notes, held by several creditors.