Court OKs Dayton Superior's Plan of Reorganization

Dayton Superior Corp., a North American provider of specialized products for the nonresidential concrete construction market, announced on October 14 that the U.S. Bankruptcy Court for the District of Delaware in Wilmington has confirmed the Company's Plan of Reorganization.

The company reported the Plan was accepted by an overwhelming majority of Dayton Superior's creditors.

"We are pleased that the court has confirmed our Plan of Reorganization, clearing the way for us to officially exit bankruptcy on or about October 26th," said Eric R. Zimmerman, Dayton Superior's President and Chief Executive Officer. "We want to thank our employees, customers, distributors, and suppliers, who supported us during this process as well as our new financial sponsors, Oaktree Capital Management, L.P. and Solus Alternative Asset Management LP; and our exit lenders -- Bank of America, UBS, Key Bank, Silverpoint and Davidson Kempner."

Under the Plan as confirmed by the court, Dayton Superior will eliminate $230 million in debt, or approximately 65 percent of its total debt at filing, and annual interest payments will be reduced by approximately $24 million. All existing common shares in the Company are being cancelled and will receive no recovery. The Company will emerge with a new $110 million, four-year revolving credit facility and a $100 million term loan.

"This financial reorganization has been transformative for Dayton Superior," said Zimmerman. "We have substantially reduced the debt burden that the Company has labored under for nearly a decade and positioned the Company for a bright future. The new financing will provide more than adequate liquidity to meet all of our working capital needs, including future capital investments, and the capacity to endure an extended weak economic environment."

Under the confirmed Plan, $170 million prepetition senior subordinated notes will be converted into new stock of the reorganized Company. Qualified note holders have purchased additional shares of stock through a $100 million rights offering which was backstopped by Oaktree, the largest prepetition note holder. When the Plan becomes effective, Oaktree will own a substantial majority of the stock of the reorganized Company, which will be privately held and operated by the current management team.

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. Additional information for creditors and other parties is available through a link on the Company website, daytonsuperior.com, the company noted in a release.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

Related terms: bank, bankruptcy, ceo, construction, debt, delaware, market, note, president, products