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Dayton Superior plan confirmed; effective date expected Oct. 26
By Alice Popovici
New York, Oct. 14 - Dayton Superior Corp.'s plan of reorganization was confirmed Wednesday by the U.S. Bankruptcy Court for the District of Delaware, according to a company press release.
The company expects to exit bankruptcy on or around Oct. 26.
Under the confirmed plan, Dayton Superior will eliminate $230 million in debt and will emerge with a new $110 million four-year revolving credit facility and a $100 million term loan, according to the company. Its annual interest payments will be reduced by approximately $24 million.
"This financial reorganization has been transformative for Dayton Superior," said president and chief executive officer Eric Zimmerman in the press release. "The new financing will provide more than adequate liquidity to meet all of our working capital needs, including future capital investments, and the capacity to endure an extended weak economic environment."
During the Thursday hearing, the company received approval to enter into a commitment letter with Bank of America, NA, UBS Loan Finance LLC and KeyBank NA for $110 million in exit financing, according to an attorney familiar with the case.
As previously reported, the proposed exit facility includes a $20 million sub-limit for letters of credit. Under the commitment letter, the company has agreed to work exclusively with the proposed lenders to close the exit facility until the earlier of Dec. 31 and the exit closing date.
Dayton Superior, a Dayton, Ohio-based provider of specialized products consumed in nonresidential concrete construction and concrete forming, filed for bankruptcy on April 19. Its Chapter 11 case number is 09-11351.
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