Fiber Maker Wellman Files for Bankruptcy

Fort Mill, S.C., Feb 25, 2008 -- Fiber maker Wellman Inc. has filed for Chapter 11 bankruptcy protection.

"Although the company has taken numerous steps to reduce its debt and strengthen its balance sheet through the disposition of certain businesses, headcount reductions and other cost reductions, these actions were not sufficient to offset the deterioration in business conditions and the cost of our substantial debt obligations," said CEO Thomas Duff

"Filing for Chapter 11 allows us to continue operating our business without interruption while continuing to pursue our previously announced strategic alternative process."

In conjunction with the filing, the Wellman has received a commitment from its existing revolving credit lenders for up to $225 million in debtor-in-possession financing. The financing, combined with cash from operations, will be used to fund post-petition operating expenses, including employee and supplier obligations, Wellman said.