PTC Alliance Obtains Court Approval of Asset Sale
04/19/2010 - The U.S. Bankruptcy Court has authorized the sale of substantially all of PTC Alliance’s assets in the U.S. and the stock of its non-debtor German subsidiary, Wiederholt GmbH. The sale to agents of the company's credit facilities supported by funds managed by Black Diamond Capital Management LLC was authorized at a hearing on April 14, 2010.
The U.S. Bankruptcy Court has authorized the sale of substantially all of PTC Alliance’s assets in the U.S. and the stock of its non-debtor German subsidiary, Wiederholt GmbH. The sale to agents of the company's credit facilities supported by funds managed by Black Diamond Capital Management LLC was authorized at a hearing on April 14, 2010.
"The sale marks the beginning of a new era for PTC Alliance," said Peter Whiting, the company's Chairman and Chief Executive Officer. "Now that the cloud of uncertainty about our future has been lifted, we can focus all of our time and energy on providing our customers with the highest quality products and services."
"We look forward to building upon the company's core strengths and serving the needs of its customers," added Christopher Boyle, Managing Director of Black Diamond Capital Management.
As previously announced, the sale agreement includes:
- Credit bids in the amount of approximately $120 million
- Assumption of amounts owed by PTC Alliance pursuant to certain debtor-in-possession financing in the amount of $5 million
- Payment of certain bankruptcy-related costs in the amount of up to $6.6 million
- The assumption of other liabilities up to $13 million
- Payment of $500,000 in cash.
PTC Alliance has been operating business as usual throughout the Chapter 11 process and expects to continue to do so. The company and its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code on October 1, 2009, in the U.S. Bankruptcy Court for the 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. It has 11 strategically located factories in North America and a manufacturing complex in Germany to minimize lead time, shipping distance, and expense for its customers.
