The United States Bankruptcy Court for the Southern District of New York has issued an order approving Formica Corp.'s disclosure statement with respect to its plan of reorganization. The court's action indicates that Formica's disclosure statement contains adequate information for parties in interest to vote on the plan.

Previously, on Oct. 29, the Court had conditionally approved the disclosure statement with the understanding that the company would soon resolve matters pertaining to its exit financing.

Formica will now begin soliciting acceptances for its proposed plan of reorganization. The confirmation hearing for the court's approval of the plan is scheduled for Jan. 13. The company also reported that it has executed a term sheet so that it will have access to $65 million once the plan is confirmed and effective. The exit financing is to be provided by the Foothill Group Inc., an affiliate of Wells Fargo Foothill Inc.

On July 1, the court approved the stock purchase agreement with an investment group sponsored by Cerberus Capital Management L.P. and Oaktree Capital Management LLC pursuant to which the investment group committed to invest $175 million in cash in Formica and its subsidiaries.

Formica's plan incorporates an agreement as to the terms of a consensual reorganization reached with a steering committee for its senior secured lenders and its official committee of unsecured creditors.