Taylor-Wharton disclosure statement approved; plan hearing Feb. 16

By Caroline Salls

Pittsburgh, Jan. 11 - Taylor-Wharton International LLC received court approval of the disclosure statement for its plan of reorganization, according to a company news release.

The plan confirmation hearing is scheduled for Feb. 16.

"We look forward to putting the plan before our creditors and are pleased to report we remain on schedule to complete a successful restructuring by the end of February," chairman and chief executive officer Bill Corbin said in the release.

As previously reported, the company filed bankruptcy to implement an agreement in principle with the holders of its mezzanine senior subordinated secured notes and first-lien notes to significantly improve the company's capital structure and create financial flexibility.

Under the terms of the agreement, Taylor-Wharton's debt obligations will be reduced by more than 50%.

Upon emergence from Chapter 11, the company will receive improved terms from their lenders and access to new financing, including a $25 million credit facility.

The agreement also calls for the investment of new equity capital by the mezzanine holders and the company's financial sponsors.

Trade creditors will be paid in full.

Taylor-Wharton is a Mechanicsburg, Pa.-based technology, service and manufacturing network for gas applications involving pressure vessels and precision valves. The company filed for bankruptcy on Nov. 18 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-14089.

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