PTCAlliance plans to exit bankruptcy by end of July; senior lenders to provide $70 million exit loan

By Caroline Salls

Pittsburgh, July 18 - PTCAlliance Corp. plans to emerge from Chapter 11 bankruptcy by the end of July following confirmation of its prepackaged plan of reorganization on July 13, according to a company news release.

"We confirmed our plan in 63 days, which is a remarkable achievement," chairman and chief executive officer Peter Whiting said in the release.

"The result is a testament to the outstanding effort put forth by the senior management team, PTCAlliance's employees, our board of directors, our senior lenders and outside professionals led by Eric Schaffer of the Pittsburgh office of Reed Smith LLP.

"All of these groups contributed greatly to the successful restructuring of PTCAlliance."

Under the plan, PTCAlliance's senior lenders will exchange their pre-bankruptcy debt for all of the equity in the reorganized company.

In addition, the company's senior lenders have agreed to provide PTCAlliance with a $70 million exit financing credit facility to fund the company's operations upon emergence from Chapter 11.

"Our new exit financing provided by our senior lenders should allow PTCAlliance to emerge from Chapter 11 as a well-capitalized company with a solid balance sheet," Whiting said in the release.

Upon emergence, Whiting will remain as chairman, president and CEO, and no senior management changes are expected as a result of the restructuring.

PTCAlliance, a Wexford, Pa., manufacturer and marketer of welded and cold drawn mechanical steel tubing, fabricated parts and precision components and chrome-plated steel bars, filed for bankruptcy on May 10 in the U.S. Bankruptcy Court for the Western District of Pennsylvania. Its Chapter 11 case number is 06-22110.

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