DALLAS -- Atrium Companies, Inc., one of the largest manufacturers of residential vinyl and aluminum windows and patio doors in North America, today announced has filed voluntary Chapter 11 petitions with the United States Bankruptcy Court in Wilmington, Delaware, and the Company's Canadian subsidiary initiated reorganization proceedings under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Toronto.
The filing was made with the blessing of more than two-thirds of the company's secured lenders as part of a plan to reduce the Company's outstanding debt by more than $350 million.
Atrium and each of its subsidiaries intend to operate as usual during the debt restructuring process, and existing management will remain in place. The Company expects to deliver on all commitments to customers and honor all warranties in the normal course. The Company does not anticipate any layoffs or facility closings as a result of the debt restructuring, and plans to continue to pay all employee wages and benefits in the normal and ordinary course.
Suppliers will be paid under normal terms for goods and services provided after the filing date of January 20, 2010. In addition, and subject to its approval, the Plan provides for the payment in full in cash of all valid claims for goods and services provided to the Company before the filing, during which time the Company has remained current on all of its trade-related payment obligations.
"The balance sheet restructuring announced today will substantially reduce our outstanding debt and put Atrium in a much stronger financial position to grow our business over the long term," said Gregory T. Faherty, President and Chief Executive Officer of Atrium. "We have already done the hard work of lowering our cost structure and reducing excess capacity in light of the difficult environment under which we have been operating for more than three years. And, we are already experiencing the positive impact of these initiatives through increased profitability. Now, as part of the restructuring announced today, we will put in place a healthier capital structure that is more appropriate to the current size of the market, while freeing up additional cash that can be invested in future growth as the housing market rebounds. Once our balance sheet is right-sized, Atrium will be more competitive than ever."
Additional information on Atrium's balance sheet restructuring is available on the Company's website at www.atrium.com/restructuring