Taylor-Wharton International LLC Obtains Confirmation of Plan of Reorganization; Company on Track to Emerge from Chapter 11 by June 30, 2010
MECHANICSBURG, Pa., May 26 /PRNewswire/ -- Taylor-Wharton International LLC ("TWI"), a leading global technology, service and manufacturing network for gas applications involving pressure vessels and precision valves, today obtained confirmation of its Plan of Reorganization from the U.S. Bankruptcy Court. The Company expects to emerge from Chapter 11 restructuring by June 30, 2010.
"The Plan confirmed today will reduce TWI's debt obligations by more than 50%, significantly improve our financial foundation, and create financial flexibility, all while maximizing value for our creditors," said Bill Corbin, chairman and chief executive officer of TWI. "The Court ruling puts us on track to emerge from Chapter 11 restructuring in the next few weeks as a stronger company, better positioned to compete in the markets we serve."
The Hon. Brendan Shannon of the U.S. Bankruptcy Court for the District of Delaware today signed an order confirming the Plan following a hearing yesterday. More than 92% of creditors who cast ballots voted in favor of confirmation. The Company will begin making distributions to creditors once the Plan becomes effective.
Separately, the Company is currently pursuing the sale of its Huntsville, Alabama cylinder operations. As previously announced, TWI has selected Norris Cylinder Corp. ("Norris") as a stalking horse bidder for the assets under Section 363 of the U.S. Bankruptcy Code. Norris has agreed to purchase the assets for $11 million, subject to certain adjustments detailed in the asset purchase agreement dated April 30, 2010. The Company will hold a court-authorized auction to select the highest and best offer at the offices of Reed Smith LLP in Wilmington, Del. on June 3, as is required under the Bankruptcy Code.
As previously reported, TWI implemented a voluntary restructuring on November 18, 2009 to execute an agreement in principle with the holders of its mezzanine senior subordinated secured notes and holders of its first lien notes to significantly improve the Company's capital structure and create financial flexibility. Upon emergence from Chapter 11, the Company will receive improved terms from its 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 Company's financial sponsors, in support of the overall refinancing strategy. Trade creditors will be fully compensated.
Copies of the plan and disclosure statement materials can be found at www.twreorg.com.
About Taylor-Wharton International LLC
Taylor-Wharton International LLC is a leading global 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.
SOURCE Taylor-Wharton International LLC
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