Drypers Corp., Houston, on Oct. 11 filed a petition for Chapter 11 reorganization in U.S. Bankruptcy Court. The disposable-diaper company also announced it has settled its licensing dispute with Procter & Gamble Co., Cincinnati, so Drypers can continue licensing P&G patents. Drypers is seeking court approval for $25 million in debtor-in-possession financing needed to meet obligations to suppliers. An agreement for a payment plan for the P&G licenses, for which P&G had sought back payments of $4.1 million, is subject to court approval. Drypers stock has tumbled by more than 90% this year. Among its woes: losses from Latin American operations and recently expanding a plant for Wal-Mart Stores private-label business that has yet to materialize. The company doesn't have an agency of record.
Copyright October 2000, Crain Communications Inc.