Arclin expects to complete financial restructuring in early January

By Caroline Salls

Pittsburgh, Dec. 11 - Arclin said it expects to complete its financial restructuring in early January after its plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware and the plan of arrangement filed by its Canadian entities was approved by the Ontario Superior Court of Justice.

"Court approval in both Canada and the U.S. is the last major step for Arclin in what has been a very fast and efficient restructuring process," president and chief executive officer Claudio D'Ambrosio said in a company news release.

"We are poised to emerge with increased financial flexibility and a significantly improved capital structure."

Under the plans approved by the Canadian and U.S. courts, Arclin's funded debt will be reduced to $60 million from $234 million.

Affiliates of Black Diamond Capital Management, LLC and Silver Point Capital, LP, the company's lenders, will become the majority owners of Arclin through an exchange of debt for equity.

Arclin, a Mississauga, Ont., provider of bonding and surfacing solutions, filed for bankruptcy on July 27. Its Chapter 11 case number is 09-12628.

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