Magnatrax plan confirmed, calls for conversion of $100 million of debt into equity

By Carlise Newman

Chicago, Nov. 18 - Magnatrax Corp. said its reorganization plan, which calls for a conversion of over $100 million of debt into equity, has been confirmed in court.

The plan also includes a $30 million line of credit to fund operations, the divestiture of non-core businesses, and the compromised settlement of claims by the company's unsecured creditors.

The plan was confirmed by the U.S. Bankruptcy Court for the District of Delaware.

The Magnatrax Group has spent the last six months restructuring its business with a focus on its pre-engineered buildings and components businesses. The process allowed the group to improve its competitive position. As part of its refocus on core businesses, Magnatrax plans to divest its subsidiaries, Republic Builders Products Co. and Windsor Door Inc., by year-end.

The Alpharetta, Ga.-based company manufactures and supplies of custom, pre-engineered buildings and components for builders and the commercial construction market.

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