International Aluminum Corporation (the “Company”), a manufacturer of diversified lines of quality aluminum and vinyl products, today announced that it has entered into a restructuring agreement with holders of approximately 72% of its senior debt.
The goal of the restructuring agreement is to significantly reduce the Company’s debt and other guaranteed obligations, allowing it to maximize its product offerings, customer experience, and profitability for long-term success.
To facilitate the restructuring agreement, the Company and its U.S. subsidiaries have filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company also filed its proposed Plan of Reorganization (the “Plan”) and related Disclosure Statement and intends to move swiftly through approval of the Disclosure Statement and confirmation of the Plan by the Court to permit an expedited exit from bankruptcy. The Company’s Canadian subsidiaries are not included in the Chapter 11 filing.
“International Aluminum Corporation is a strong and viable Company. We are securing the Company’s long-term future by taking this decisive action to restructure our debt and strengthen our balance sheet,” said International Aluminum Chief Executive Officer, Dick Almy. “We believe that through this process the Company will emerge stronger, more competitive, and unburdened by debt, allowing for future growth.”
As is standard in cases such as this, International Aluminum is seeking authority from the Court that will enable it to continue to operate its business without interruption. The requests include authority to continue to honor all customer programs such as warranties and to continue to pay salaries and provide benefits to employees.
In addition, the Company is in a very strong cash position, allowing it to continue to support its day-to-day and ongoing operations, including paying vendors and suppliers for goods and services provided after the Company’s Chapter 11 case filings. The proposed reorganization Plan also provides for the full payment of all pre-Chapter 11 claims of the Company’s vendors and suppliers.
In response to the unprecedented downturn in both residential and commercial construction sectors, causing a severe decline in the purchase and use of aluminum and vinyl products, the Company determined that a Chapter 11 restructuring would be the best solution to protect the future of the business and the interests of its valuable partners and constituents.
“Like many other manufacturing companies in the United States, the protracted recession has had a dramatic impact on our ability to manage debt costs and comply with our debt guidelines,” said Mr. Almy. “But International Aluminum is resolute and committed to the future, and we believe that this restructuring will ultimately benefit our customers, business partners, and employees.”