Formica exits Chapter 11, $370 million lighter

By Jeff Pines

Washington, June 10 - Formica Corp. said it emerged from bankruptcy Thursday with its debt burden reduced by $370 million.

The Cincinnati-based laminate and solid surfacing materials company now has $160 million in long-term debt, down from more than $370 million when it filed for Chapter 11 in March 2002.

On exit, the company has a $135 million term facility through General Electric Capital Corp. and a $35 million revolver through Wells Fargo Foothill, Inc.

As part of the reorganization plan, a group of investors led by Cerberus Capital Management LP and Oaktree Capital Management LLC bought most of the common shares of the reorganized company for $175 million in cash. Substantially all of these proceeds will be used to repay existing secured lenders. Management will hold options to purchase about 10% of the common shares.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.