Atrium granted court approval to enter Golden Gate/Kenner equity deal

By Caroline Salls

Pittsburgh, March 23 - Atrium Cos. Inc. received court approval to enter into an equity purchase agreement with Golden Gate Capital and Kenner & Co. in conjunction with Atrium's plan of reorganization, according to a company news release.

The company said the court's approval paves the way for the two private equity companies to acquire 92.5% of the reorganized company upon its emergence from bankruptcy.

Under Atrium's plan, its bondholders would receive the remaining 7.5% equity interest.

"Golden Gate Capital, as majority owner, in partnership with Kenner & Co., our current equity sponsor, would bring significant financial resources and industry knowledge that will well position Atrium to take advantage of the eventual rebound in the housing market," Atrium president and chief executive officer Gregory T. Faherty said in the release.

As previously reported, the court also approved the disclosure statement for the company's plan. The plan confirmation hearing is scheduled for April 28.

Atrium, a Dallas-based manufacturer of vinyl and aluminum windows and patio doors, filed for bankruptcy on Jan. 21 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-10150.

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