NTK Holdings, Inc., Nortek Holdings Inc., Nortek Inc., and Nortek’s domestic subsidiaries today announced that the United States Bankruptcy Court for the District of Delaware has confirmed the company’s prepackaged plans of reorganization.
Nortek expects to emerge from bankruptcy as a reorganized company as expeditiously as possible.
The Bankruptcy Court’s plan confirmation, which was granted by Judge Kevin J. Carey, follows previous approval of a number of motions by the debtors requesting permission to pay trade creditors any balances that were incurred prior to the Debtors’ chapter 11 filings on October 21, 2009; pay all salaries and wages to employees; honor all customer programs and product warranties; and continue to use cash on hand for general business operations.
Richard L. Bready, chairman and CEO, said, “Approval from the court is a major milestone in our reorganization process. We appreciate the cooperation we have received from our employees, customers, suppliers, business partners, and bondholders, whose collective support helped us navigate this complex process.”
As stated previously, Nortek has a commitment for a $250 million asset-backed credit facility, which will be available for general business operations when the Debtors emerge from bankruptcy.
