Arclin Completes Financial Restructuring
MISSISSAUGA, Ontario, Jan. 15 /PRNewswire/ — Arclin, a privately held provider of bonding and surfacing solutions, today announced that it has successfully completed its financial restructuring and emerged from protection under Chapter 11 of the United States Bankruptcy Code and the Companies’ Creditors Arrangement Act (“CCAA”) in Canada.
Claudio D’Ambrosio, Arclin’s President and Chief Executive Officer, said, “Today marks the successful completion of our financial restructuring and the start of a new chapter for our company. We are pleased to emerge from this process with one of the strongest balance sheets in our industry and enhanced financial flexibility, better positioned than ever to provide our customers with the product quality, innovation and service they have come to expect from Arclin. We sincerely appreciate the support of our employees, customers, suppliers and other stakeholders throughout this process and we are excited to move forward as a financially stronger company.”
Arclin has met all closing conditions of its Plan of Reorganization and Plan of Arrangement. As previously announced, Arclin’s Plan of Reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware on December 8, 2009, and Arclin’s Plan of Arrangement was approved by the Ontario Superior Court of Justice on December 11, 2009.
Arclin’s funded indebtedness has been reduced from US$234 million to US$60 million. Affiliates of Black Diamond Capital Management, L.L.C. and Silver Point Capital, L.P., the Company’s lenders, have exchanged debt for equity and are now majority owners of the Company. Additionally, the Company has obtained a revolving line of credit facility for US$25 million with Bank of America.
Arclin will continue to further enhance its position as an innovative supplier and its commitment to environmental stewardship.
Mr. D’Ambrosio added, “Our commitment to exceeding our customers’ needs with innovative and sustainable solutions has never been stronger. In parallel with the financial restructuring process, we have made important operational enhancements. In particular, we have brought our two remaining overlays facilities under our FSC Chain of Custody certification, making the majority of Arclin’s industrial and decorative overlay products Chain of Custody certified to a variety of industries. We have also introduced E-Natural(TM) and E-Sorb(TM), low/zero emitting wood panel binding systems that will give our customers the ability to target specific green markets and provide architects and design specifiers the ability to control emissions for a given project. We believe these strategic product developments, coupled with our strong balance sheet, position Arclin well for 2010 and beyond.”
Based in Mississauga, Ontario, Arclin is a leading provider of innovative bonding and surfacing solutions for the building and construction, engineered materials and natural resource markets. Arclin provides bonding solutions for a number of applications including wood based panels, engineered wood, non-wovens and paper impregnation. As a world leader in paper overlays technology, Arclin provides high value surfacing solutions for decorative panels, building products and industrial specialty applications for North American and export markets.
About Black Diamond Capital Management, L.L.C.
Black Diamond Capital Management, L.L.C. is a leading privately-held alternative asset management firm with approximately $5 billion under management in a combination of hedge funds, structured vehicles and funds with distressed debt/private equity control strategies. Founded in 1995, Black Diamond has offices in Greenwich, CT and Lake Forest, IL.
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