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Smith Wants Extension but Is Set to File Reorganization Plan

July 14, 1987|JANE APPLEGATE | Times Staff Writer

Smith International Inc. is prepared to file a reorganization plan today, although officials at the Newport Beach oil-field equipment company said Monday they plan to ask the bankruptcy court judge for a short extension.

Chief financial officer Loren B. Carroll said Monday he is confident the judge will approve an extension, but if not, Smith will file a plan to meet today's deadline.

Although Smith's management has been negotiating steadily with its creditors, Carroll said the company needs a little more time to work out certain details. He did not elaborate.

Smith has been operating under Chapter 11 bankruptcy protection for the past 15 months. Smith filed for bankruptcy shortly after a Los Angeles federal judge ordered the company to pay $205 million to Hughes Tool Co. in a patent infringement suit.

In early June, Smith and Baker Hughes agreed to settle the case for $95 million. Hughes recently merged with Baker International Inc.

Meanwhile, apparently in anticipation of a reorganization plan being filed, Smith stock rose yesterday to top its 52-week high of $10, closing at $10.75, up 87.5 cents for the day.

Attorneys for Smith's shareholders said they are "prepared to file a complete plan," and would oppose any extension of time being granted to Smith, according to documents filed late Thursday in bankruptcy court.

Richard J. Wynne), the shareholders' attorney, wrote that they are concerned that Smith's reorganization plan may not be accepted by creditors or be "legally confirmable."

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