MECHANICSBURG, Pa., Jan. 11 /PRNewswire/ -- Taylor-Wharton International LLC ("TWI") and its affiliated chapter 11 debtors and debtors in possession (the "Debtors"), collectively the world's leading technology, service and manufacturing network for gas applications involving pressure vessels and precision valves, reported that today they received approval from the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") of the adequacy of their disclosure statement for their proposed Joint Plan of Reorganization (the "Plan"). Today's Bankruptcy Court approval of the Debtors' disclosure statement allows the Debtors to commence the solicitation of votes for confirmation of their Plan.
Plan materials and ballots will be mailed on January 11, 2010. The deadline for returning completed ballots is 5:00 p.m. EST on February 8, 2010. Objections, if any, to confirmation of the Plan must be received by the Court and notice parties no later than February 8, 2010 at 4:00 p.m. A hearing to consider confirmation of the Plan is scheduled for February 16, 2010.
"We look forward to putting the plan before our creditors and are pleased to report we remain on schedule to complete a successful restructuring by the end of February," said Bill Corbin, chairman and chief executive officer of TWI.
In addition to today's Bankruptcy Court approval of their disclosure statement, on January 8, 2010, the Debtors received final authority to continue accessing up to $20 million in debtor-in-possession (DIP) financing, provided by a group of lenders led by GE Capital. The Debtors will continue to use the financing, along with cash generated from operations, to implement their Plan, pay normal operating expenses, and operate their businesses in the ordinary course.
As previously announced, the Debtors filed voluntary petitions for chapter 11 bankruptcy on November 18, 2009 in order to implement an agreement in principle with the holders of their mezzanine senior subordinated secured notes and holders of their first lien notes to significantly improve the Company's capital structure and create financial flexibility. Under the terms of the agreement, the Debtors' debt obligations will be reduced by more than 50%.
Additionally, upon emergence from chapter 11, the Debtors will receive improved terms from their lenders and access to new financing, including a $25 million credit facility. The agreement also calls for the investment of new equity capital by the mezzanine holders and the Debtors' financial sponsors, in support of their overall refinancing strategy. The Debtors expect trade creditors to be fully compensated.
The disclosure statement includes an overview of the Debtors' restructuring progress and other information about the Debtors, a description of distributions to creditors and an analysis of the feasibility of the Plan, as well as many of the technical matters required for confirmation of the Plan, such as description of who is eligible to vote on the Plan and the voting process.
Copies of the Plan, disclosure statement materials and related materials can be found at www.twreorg.com.
About Taylor-Wharton International LLC
Taylor-Wharton International LLC is the world's leading technology, service and manufacturing network for gas applications involving pressure vessels and precision valves. Taylor-Wharton International operates three complementary businesses from 16 manufacturing, sales, warehouse and service facilities in six countries on four continents, and markets its products in over 80 countries worldwide. Additional information about Taylor-Wharton International can be located at www.TWIglobaltech.com, www.taylorwharton.com, www.awtank.com, and www.sherwoodvalve.com.
SOURCE Taylor-Wharton International LLC