Oct 27 2009
Dayton Superior Corporation (the “Company”), the leading North American provider of specialized products for the nonresidential concrete construction market, today announced that it has emerged from Chapter 11 bankruptcy protection effective today, pursuant to a Plan of Reorganization (the “Plan”) approved by the U.S. Bankruptcy Court for the District of Delaware in Wilmington on October 14, 2009. In conjunction with the Plan, Dayton Superior closed its $110 million exit financing facility and new $100 million term loan.
“All of us at Dayton Superior are very pleased to be out of Chapter 11,” said Eric R. Zimmerman, Dayton Superior’s President and Chief Executive Officer. “We set four goals when we began this process: significantly reduce our debt, maintain business as usual through the reorganization, create the most value for creditors, and emerge in an expedited manner with a sustainable capital structure. We believe we have accomplished all of these.”
“On behalf of the Board of Directors and Management, I would like to extend my gratitude to our employees for their hard work and dedication and to our customers, distributors, suppliers, and advisors for their support during the reorganization,” said Zimmerman. “We would also like to thank our bank consortium -- Bank of America, UBS and Key Bank as well as our existing term lenders, Silverpoint and Davidson Kempner, for their confidence in us as demonstrated by our exit financing facilities. We would especially like to thank our financial sponsors, Oaktree Capital Management, L.P. and Solus Alternative Asset Management LP, for their substantial investment in Dayton Superior. It represents a strong statement of confidence in the future of the Company.”
Under the Plan as implemented, with the proceeds of the sponsor supported Rights Offering, $161 million of prepetition Senior Subordinated Notes were converted into new stock of the reorganized Company and $70 million debt obligations were paid down, resulting in a total reduction of over two-thirds of the Company’s prepetition debt. Oaktree, the largest prepetition note holder, owns a substantial majority of the stock of the new Company, which is privately held. All old Dayton Superior common shares are cancelled and receive no recovery.
“Through this financial reorganization, we have substantially reduced the debt burden that severely restricted the Company for nearly a decade,” said Zimmerman. “Our exit facility will provide more than adequate liquidity to meet all of our working capital and capital investment needs. Our conservative capital structure provides the capacity to endure an extended period of economic weakness and still take advantage of investment opportunities that come our way.
“In addition to restructuring our debt, we also took advantage of the reorganization process by rationalizing our physical infrastructure and consolidating regional operations. As a result, we are a stronger, better integrated operation today, with a more efficient distribution and rental operations footprint,” said Zimmerman.
“With this reorganization finally behind us, Dayton Superior is poised to capitalize on its position as the leading company in its industry, and we are pleased to have Dayton Superior as one of our portfolio companies,” said Jordon Kruse, Managing Director, Oaktree Capital Management. “Oaktree and its affiliates have extensive experience and a proven track record of success with companies like Dayton Superior. We are committed investors and look forward to working with management in improving and expanding Dayton Superior’s industry-leading role.”
Dayton Superior filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in Wilmington on April 19, 2009.
Source: http://www.daytonsuperior.com/