HUNTSVILLE, Ala., April 8, 2011 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc. (Other OTC: WLVT) today announced that it signed a memorandum of understanding with the Pension Benefit Guaranty Corporation (the "PBGC") relating to a settlement of claims asserted by the PBGC. The settlement terms will be incorporated into Wolverine's plan of reorganization and have the support of the company's noteholders who earlier agreed to support the reorganization plan. The settlement remains subject to final effectiveness of Wolverine's reorganization plan, which is anticipated in the next 60 days, and the termination of Wolverine's defined benefit Retirement Plan in accordance with statutory requirements. Wolverine intends to move forward expeditiously to obtain Bankruptcy Court approval of its disclosure statement, complete its reorganization and emerge from bankruptcy.
Steven S. Elbaum, Chairman of Wolverine, stated that, "Wolverine is very pleased to have reached an agreement with PBGC which converts its underfunding liability and other related claims into a payment obligation to be funded over 10 years and which will be within Wolverine's expected financial capacity."
"We appreciate PBGC's focused and constructive approach in reaching a resolution which is fair and which strengthens Wolverine's ability to be a strong and viable competitor and employer. This agreement represents an important milestone in Wolverine's effort to emerge from bankruptcy," added Elbaum. "Wolverine is grateful to its noteholders, customers, suppliers, and employees who have supported it throughout this process. Wolverine will be well positioned to successfully compete in the global markets."
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 customer's 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.