PTC Alliance Files for Chapter 11 Protection
10/02/2009 - PTC Alliance has filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The filing includes the parent company and its U.S. subsidiaries; none of its non-U.S. subsidiaries are included as debtors.
PTC Alliance has filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code, citing the international economic decline that resulted in mounting cash losses over the last 10-month period. The filing includes the parent company and its U.S. subsidiaries; none of its non-U.S. subsidiaries are included as debtors.
The company also has entered into an asset purchase agreement with funds managed by Black Diamond Capital Management LLC, the pre-petition term lenders, to act as a "stalking horse" bidder for the sale of substantially all of the company's assets pursuant to Section 363 of the U.S. Bankruptcy Code. The bid will be subject to higher and better offers, and the ultimate sale will be approved by the Bankruptcy Court.
"We are taking this action so that we can continue to support our customers worldwide," said the company's Chairman and Chief Executive Officer, Peter Whiting. "We do not expect any delays or interruptions in serving the needs of our customers and will continue to pay our suppliers and vendors for goods and services received during this period."
Stephen Deckoff, Managing Principal of Black Diamond Capital Management LLC, said, "Our proposed transaction will establish a new corporation with a stronger balance sheet and lower cost structure that it will be well positioned now and in the future to provide PTC's customers with high-quality tubing products and precision components."
The company has obtained a commitment for up to $15 million in debtor-in-possession financing, which together with cash from operations, will be used to fund operating expenses during the Chapter 11 pending the closing of the sale.
The filing took place in the U.S. Bankruptcy Court, District of Delaware.
PTC Alliance is a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components, and chrome-plated rod. The company's major customers include steel service centers, automotive and truck manufacturers, construction and agricultural equipment OEMs, and machinery and appliance makers. PTC Alliance has 11 strategically located factories in North America and a manufacturing complex in Germany.
Black Diamond Capital Management, LLC 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, Conn., and Lake Forest, Ill.
