International Aluminum and its units emerge from Chapter 11 bankruptcy

By Jennifer Lanning Drey

Portland, Ore., May 21 - International Aluminum Corp. and its U.S. subsidiaries have emerged from bankruptcy, according to a company news release.

The company will now be called International Architectural Group LLC, as part of a newly formed company under its plan of reorganization.

As previously reported, the company's plan provides for payment in full of all pre-Chapter 11 vendor and supplier claims.

Creditor treatment

Specific treatment of creditors will include:

• Holders of priority non-tax claims will be paid in full in cash;

• Holders of credit agreement claims will recover 72.5% to 82% through a share of excess cash, a share of $38 million in new term notes and a share of 100% of the new equity in the reorganized company. The new term loans will mature in 2015 and bear interest at Libor plus 425 basis points, with a floor of 2.5%, plus 3.25% paid-in-kind interest;

• Holders of other secured claims will recover 100% through either payment in the ordinary course of business or transfer of the collateral securing the claim;

• Holders of notes claims and equity interests will receive no distribution;

• Holders of general unsecured claims will recover 100% through payment in the ordinary course of business; and

• Intercompany claims will either be reinstated, or adjusted, waived, continued or capitalized.

International Aluminum, a Monterey Park, Calif., manufacturer of diversified lines of aluminum and vinyl products, filed for Chapter 11 bankruptcy on Jan. 4. Its case number is 10-10003.

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