Court, creditors approve Amtrol reorganization

WEST WARWICK – A Chapter 11 reorganization plan for Amtrol Holdings Inc., Amtrol Inc., Water Soft LLC and Amtrol International Investments Inc. was approved last week by Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware.
The plan – proposed jointly by Amtrol and an official panel of the company’s unsecured creditors – also won the unanimous approval of the holders of the company’s senior subordinated notes (secured debt), Amtrol said.
The holders of more than 98 percent of those notes, led by Newport Global Advisors, agreed to convert their notes into equity as part of the restructuring, thereby reducing Amtrol’s debt by about 45 percent. The remaining holders elected to receive cash in exchange for their notes, Amtrol said.
“We are very pleased with the confirmation of the plan and the unanimous vote of the holders of the notes, which we believe is an endorsement of the company’s businesses and prospects,” Larry T. Guillemette, Amtrol’s chairman and CEO, said in a statement.
A deal for exit financing, arranged by Merrill Lynch and Credit Suisse, is expected to close next week, Amtrol said.
The company, which last year recorded global revenue of $231.1 million, filed for Chapter 11 protection for its domestic operations in December. (Its foreign operations were not involved in the filing.) Since then, its manufacturing and distribution facilities have continued to serve customers as normal, Amtrol said.
Amtrol’s main legal advisers for the case are 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 maker of water heaters and other products for water storage and pressure control under names including Well-X-Trol, Extrol, Therm-X-Trol and BoilerMate. Additional information about the company and its reorganization is available at www.kccllc.net/amtrol or by calling KCC at (888) 251-2873.

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