Xerium Technologies won court approval for its prepackaged reorganization plan and expects to exit bankruptcy protection by the end of the month.
The Raleigh-based company also reported first quarter net sales of $135 million, up 15.9 percent from a year earlier. Xerium produces equipment used to make paper and has been hit hard by the global recession.
"We are only a few steps away from completing our financial reorganization," CEO Stephen Light told analysts and investors on a conference call this morning.
The company also disclosed it's in discussions with a Chinese manufacturer that could expand Xerium's foothold in Asia.
Xerium, which employs more than 3,000 people worldwide, filed for bankruptcy protection at the end of March. As part of the reorganization, the company's debt will be reduced to about $410 million from $620 million. Also, Xerium's existing shares will be cancelled and replaced with new stock.
Xerium's shares rose 3 cents today to $1.20. The stock has more than doubled since December, but traded above $8 two years ago.