WEST WARWICK – Amtrol Inc. today announced it has emerged from its Chapter 11 reorganization thanks to the closing of $128 million in exit financing
The closing follows the May 24 confirmation by Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware, of the plan proposed by the company and its unsecured creditors. (READ MORE)
The plan received approval from 100 percent of creditors who held Amtrol senior subordinated notes. More than 98 percent of those creditors, led by Newport Global Advisors, have converted their notes to equity in the company.
The exit financing – arranged by Merrill Lynch and Credit Suisse – was used to repay the debtor-in-possession financing that had allowed Amtrol to operate normally since it filed for Chapter 11 protection in December; to pay off the less than 2 percent of note holders who elected to receive cash instead of equity; and to cover the costs of the bankruptcy filing.
“We are very excited about the new beginning for Amtrol provided by this new capital structure and the strategic backing of Newport Global Advisors,” said Larry T. Guillemette, the company’s chairman and CEO. “The past several years have seen Amtrol – a long-time industry leader – burdened by too much debt.”
The restructuring has reduced Amtrol’s debt by 45 percent, greatly lowering its debt capital costs and its interest expense.
“We look forward to investing in the company, its people and products much more aggressively than the previous capital structure permitted,” Guillemette said.
Amtrol’s principal legal advisers for the proceedings were Douglas Gray, Stuart Brown and William Chipman Jr., of Edwards Angell Palmer & Dodge LLP. Its financial adviser is Miller Buckfire & Co. LLC.
Amtrol is a manufacturer and marketer of water storage and pressure tanks, water heaters, cylinders and related products under the Well-X-Trol, EXTROL, Therm-X-Trol and BoilerMate names. Additional information about the company’s reorganization is available at at www.kccllc.net/amtrol. Information on Amtrol and its services can be found at www.amtrol.com .
