TPT September 2009

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Industry News
8 September 2009 ›
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RATHGIBSON, Inc and its domestic
affiliates have announced that they have
begun reorganisation proceedings under
Chapter 11 of the United States Bankruptcy
Code in the United States Bankruptcy
Court for the District of Delaware.
In connection with the filing, RathGibson
also has filed a proposed plan of
reorganisation that provides for holders
of allowed general unsecured creditors to
be unimpaired and paid in full on
undisputed amounts owed prior to the
bankruptcy filing.
The plan has the unanimous support of
the company’s prepetition secured lender,
boards of directors, and the management
leadership of the company, as well as
certain key noteholders.
The plan, if consummated, will result
in significantly reducing the company’s
debt burden.
The Chapter 11 filing marks an important
step in RathGibson’s ongoing efforts to
position the company for long-term success.
“The current management team inherited
a significant debt load that cannot be
sustained, particularly in these challenging
financial markets,” said Mike Schwartz,
president and CEO of RathGibson. “As a
result, we must take action to position the
company for the future. No one should be
confused about what a bankruptcy process
means for RathGibson.
“Following a record year of performance
in 2008 for RathGibson and the industry,
we are experiencing demand levels
reduced by 50%. This reduction in demand
combined with our leveraged position
necessitates this action. We will emerge
from this process stronger than ever.”
Mr Schwartz emphasised that the Chapter
11 filing should have no impact on day-
to-day operations. “We have, subject to
bankruptcy court approval, which we expect
to obtain, secured ‘debtor-in-possession’
financing, which will provide the company
with sufficient liquidity to continue normal
operations during this transition period.
“Our brand, our products, our quality
systems and our people remain strong. This
process is strictly a financial restructuring
of our debt. We are fully committed to
ensuring that our valued customers and
channel partners are not affected by this
restructuring process.
“During this period, we will work even
more closely with our customers, channel
partners, vendors, suppliers and employees
to deliver the same level of service they
expect and deserve from RathGibson.
“I remain thankful for the steadfast support
of our employees and other stakeholders
throughout this entire process, and I
am confident in our ability to expand
and pursue new opportunities for the
RathGibson brand.”
RathGibson – USA
Fax: +01 184727 62471
Website:
RathGibson enters important
phase of financial restructuring