International Aluminum Corporation, a manufacturer of diversified lines of quality aluminum and vinyl products, on January 4 announced that it has entered into a restructuring agreement with holders of approximately 72 percent of its senior debt. The goal of the restructuring agreement is to significantly reduce the company’s debt and other guaranteed obligations, allowing it to maximize its product offerings, customer experience, and profitability for long-term success.
To facilitate the restructuring agreement, the company and its U.S. subsidiaries have filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company also filed its proposed Plan of Reorganization and related Disclosure Statement and intends to move swiftly through approval of the Disclosure Statement and confirmation of the Plan by the Court to permit an expedited exit from bankruptcy. The company’s Canadian subsidiaries are not included in the Chapter 11 filing.
“International Aluminum Corporation is a strong and viable company. We are securing the company’s long-term future by taking this decisive action to restructure our debt and strengthen our balance sheet,” said International Aluminum chief executive officer Dick Almy. “We believe that through this process the Company will emerge stronger, more competitive, and unburdened by debt, allowing for future growth.”
As is standard in cases such as this, International Aluminum is seeking authority from the Court that will enable it to continue to operate its business without interruption. The requests include authority to continue to honor all customer programs such as warranties and to continue to pay salaries and provide benefits to employees.
In addition, the company is in a very strong cash position, allowing it to continue to support its day-to-day and ongoing operations, including paying vendors and suppliers for goods and services provided after the company’s Chapter 11 case filings. The proposed reorganization Plan also provides for the full payment of all pre-Chapter 11 claims of the company’s vendors and suppliers.
In response to the unprecedented downturn in both residential and commercial construction sectors, causing a severe decline in the purchase and use of aluminum and vinyl products, the company determined that a Chapter 11 restructuring would be the best solution to protect the future of the business and the interests of its valuable partners and constituents.
“Like many other manufacturing companies in the United States, the protracted recession has had a dramatic impact on our ability to manage debt costs and comply with our debt guidelines,” said Almy. “But International Aluminum is resolute and committed to the future, and we believe that this restructuring will ultimately benefit our customers, business partners and employees.”
International Aluminum Corporation operates across North America under the brand names United States Aluminum, Raco Interior Products, International Window, and International Extrusion.
About International Aluminum
International Aluminum is an integrated building products manufacturer of diversified lines of quality aluminum and vinyl products. The Company was incorporated in California in 1963 as successor to an aluminum fabricating business begun in 1957. Residential products are fabricated from aluminum and vinyl into a broad line of horizontal sliding windows, vertical sliding windows, casement windows, garden windows, bay and bow windows, special configuration windows, louvre windows, patio doors, and related products. Commercial products are fabricated from aluminum into curtainwalls, window walls, slope glazed systems, storefront framing, entrance doors and frames, and commercial operable windows for exterior applications, including storm and blast resistant applications and office fronts, office partitions, doors, and frames for interior applications. The Company is headquartered in Monterey Park, California, and has approximately 1,000 employees. Operations are conducted through 24 facilities throughout the United States and Canada.