Reunion Industries restructures notes, refinances loan

New York, Dec. 3 - Reunion Industries Inc. said it restructured its 13% senior notes and refinanced its bank facilities.

Under the restructuring of the notes, Reunion cancelled $11 million of principal and interest and extended the maturity to December 2006.

The Pittsburgh manufacturer of metal and plastic products obtained a new $25 million credit facility with Congress Financial Corp. and entered into a $4.1 million secured term loan with a private capital fund and obtained a $1.0 million increase in an existing $2.5 million subordinated note payable to a private investment fund.

Reunion previously had $24.855 million of the 13% notes outstanding but had missed interest payments of $1.616 million due on each of Nov. 1, 2001, May 1, 2002, Nov. 1, 2002, May 1, 2003 and Nov. 1, 2003. It also missed a $12.5 million sinking fund payment due on May 1, 2002, according to a filing with the Securities and Exchange Commission.

"This success in refinancing and restructuring our debt completes the final step in our plan to restructure Reunion," said Kimball Bradley, president of Reunion, in a news release.

"Over the last two years, we have significantly reduced debt through asset sales, realigned our cost structure and eliminated our dependence on large capital projects, which historically had been a strain on our liquidity.

"The improved working capital position will enable us to shift our focus from survival to growth."

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