Atrium Makes Progress Toward RestructuringApril 6th, 2010 by Editor
Atrium Companies Inc. announced recently that it has reached an agreement with more than two-thirds of the company’s senior secured lenders on a plan to restructure and significantly improve its balance sheet and put Atrium in a stronger financial position. Under the proposed plan, which is also supported by the company’s majority owner, Kenner and Company, Atrium will reduce its outstanding debt obligations by more than $350 million, or more than 50 percent of its existing debt, through a “pre-negotiated” restructuring of its balance sheet.
To implement the balance sheet restructuring, Atrium and its U.S. subsidiaries previously filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court in Wilmington, Del., and the company’s Canadian subsidiary has initiated reorganization proceedings under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Toronto.
Atrium and all of its subsidiaries intend to operate as usual during the debt restructuring process, including delivering on all commitments to customers and honoring warranties. The company says it intends to move forward with its restructuring on an expeditious basis and complete the entire process in approximately three to four months.