PTCAlliance emerges from Chapter 11

By Jennifer Lanning Drey

Eugene, Ore., July 25 - PTCAlliance Corp.'s prepackaged plan of reorganization has gone into effect and the company has emerged from Chapter 11, according to a company news release.

"We emerge with a greatly de-leveraged balance sheet and a capital structure that is more appropriate for the cyclical nature of our business," said Peter Whiting, chairman and chief executive officer of PTCAlliance, in the release.

As previously reported, under the plan PTCAlliance's secured bank claimants will receive $76.5 million in second-priority term loan notes, and subordinated secured note claimants will receive $45.7 million in third-priority pay-in-kind term loan notes.

Administrative, priority and unsecured claims will all be paid in full.

PTCAlliance's old preferred stockholders will receive all of the equity in the reorganized company, with holders of class AA preferred shares getting 92% and class BB preferred shareholders getting 8%.

A cash distribution will be made to holders of the company's class C and class M preferred stock.

In addition, the company's senior lenders agreed to provide PTCAlliance with a $70 million exit financing credit facility to fund the company's emergence from Chapter 11, according to the release.

PTCAlliance, a Wexford, Pa., manufacturer and marketer of welded and cold drawn mechanical steel tubing, fabricated parts and precision components and chrome-plated steel bars, filed for bankruptcy on May 10 in the U.S. Bankruptcy Court for the Western District of Pennsylvania. Its Chapter 11 case number is 06-22110.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.