Formica plan of reorganization confirmed

New York, Jan. 14 - Formica Corp. said the U.S. Bankruptcy Court for the Southern District of New York confirmed its plan of reorganization.

The Warren, N.J., maker of decorative surfacing materials expects to emerge from Chapter 11 before the end of the quarter.

Under the plan, an investment group sponsored by Cerberus Capital Management LP and Oaktree Capital Management LLC will invest $175 million in cash in Formica and its subsidiaries.

These investors will own 95% of the common stock of the new parent company of Formica when it emerges from bankruptcy.

Formica's debt will be cut to $160 million compared to more than $540 million at the time it filed for Chapter 11.

On exit, Formica will enter into a $65 million revolving credit facility with The Foothill Group Inc., an affiliate of Wells Fargo Foothill Inc.

Formica filed for Chapter 11 in March 2002.

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