Wolverine Tube, Inc. Exits Chapter 11
DECATUR, Ala., June 28, 2011 /PRNewswire/ -- Wolverine Tube, Inc., a global leader in advanced metal surface technology enhancements for heat transfer solutions, announced that it has emerged from Chapter 11 bankruptcy protection effective June 28, 2011, pursuant to a Plan of Reorganization (the "Plan") approved by the U.S. Bankruptcy Court for the District of Delaware.
"As planned, Wolverine maintained its business as usual through the reorganization process, paid all unsecured creditors in full, and successfully completed the restructuring with significantly reduced debt," said Steven S. Elbaum, Chairman of Wolverine. "As a result, Wolverine has a manageable amount of debt, tangible net equity of an estimated $60-$70 million (subject to confirmation of the "fresh start" accounting) and adequate liquidity to meet its foreseeable working capital and capital investment needs."
Under the Plan, $139 million of senior secured notes and accrued interest at the petition date has been converted to equity plus a $30 million note. The Company's defined pension plan was terminated and assumed by the Pension Benefit Guaranty Corporation (PBGC) in exchange for 5 percent equity in the Company and a stream of payments over 11 years with a present value of approximately $13 million. The Company exits Chapter 11 as a privately held company with its former senior secured noteholders holding a substantial majority of the stock. All old Wolverine common and preferred shares are cancelled.
"We are very grateful to our employees, customers, suppliers and partners for their support through this reorganization process," said Harold M. Karp, President and Chief Operating Officer. "Our business plan will focus on improving positive operating income, free cash flow, and strengthening our competitiveness through continuous improvements and new product development. We are well positioned to compete successfully."
About Wolverine Tube, Inc.
Wolverine is a global leader in offering proprietary custom-engineered components that provide a thermal management solution for our customers in multiple markets including HVAC, refrigeration and appliance, electronics cooling, power generation, petrochemical and chemical processing. We deliver the most advanced metal surface technology enhancements for heat transfer solutions in today's marketplace. We have also earned a reputation for having the broadest engineered product offering in the non-ferrous metals market.
Throughout our more than 90-year history, we have utilized our proprietary tooling and process technology to enhance surface geometry for tubular and flat metal surfaces to expand our product lines, effectively meeting our customers' increasing needs for effective enhanced heat transfer performance. Our tailored solutions for many OEM customers are globally recognized.
Forward Looking Statements
All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectation and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in this press release. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligations to release publicly any update or revision to any forward-looking statements contained herein if there are any changes in conditions or circumstances on which any such forward-looking statement is based.
Harold M. Karp
President and Chief Operating Officer
Wolverine Tube, Inc.
SOURCE Wolverine Tube, Inc.