Panolam plans to exit pre-packaged bankruptcy by end of December

By Caroline Salls

Pittsburgh, Dec. 11 - Panolam Industries International, Inc. plans to emerge from bankruptcy by the end of December now that its pre-packaged plan of reorganization has been confirmed, according to a company news release.

As previously reported, the plan was confirmed Thursday by judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware.

Panolam said it will emerge from bankruptcy as soon as all of the plan closing conditions have been met.

"The bankruptcy court's confirmation of our pre-packaged plan is a major milestone for Panolam, and we are very pleased with this outcome," chairman and chief executive officer Robert J. Muller Jr. said in the release.

"We thank all of our stakeholders who played a critical role in Panolam's successful restructuring from which we will emerge with a stronger balance sheet and be better positioned to pursue future growth opportunities."

Under the plan, the company said it will be able to reduce the amount of debt on its balance sheet by $151 million, or 44%, which will eliminate roughly $16 million in annual cash interest payments on its senior subordinated notes and put it in a stronger financial position for the future.

Panolam, a Shelton, Conn., provider of decorative surfaces for commercial and residential interiors, store and store fixtures and furniture filed for bankruptcy on Nov. 4. Its Chapter 11 case number is 09-13889.

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