Indalex puts off interest payment on 11½% notes to evaluate restructuring alternatives

By Caroline Salls

Pittsburgh, Feb. 3 - Indalex Holdings Finance, Inc. will use the 30-day grace period for making the semiannual interest payment that was due Feb. 2 on Indalex Holding Corp.'s 11½% second-priority senior secured notes due 2014 to evaluate alternatives to reduce the company's overall debt level and corresponding interest burden, according to a company news release.

The company has retained Jefferies & Co., Inc. as an adviser in connection with the debt restructuring.

"I know many of our stakeholders have been concerned for some time over the amount of debt in these uncertain times - this move will address these concerns," president and chief executive officer Timothy R.J. Stubbs said in the release.

"As a result of this debt restructuring, we believe that Indalex will be stronger and healthier than ever before.

"We believe that we have the best people and the best plants in the industry and that our rapid actions over the last two years as part of our overall manufacturing strategy have put us in a position to continue to grow following a debt restructuring."

According to the release, the extrusion industry has experienced a deep and unprecedented downturn, and it is unclear when the downturn will end.

The company said it has been making and will continue to make changes as necessary to survive and prosper in these difficult conditions, including using the interest payment grace period.

Indalex is a Chicago-based producer of soft alloy extrusion products and an aluminum extruder.

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