Nortek Inc. and its affiliated domestic have completed their financial restructuring and emerged from bankruptcy.
The emergence, which came only 57 days after the filing of a prepackaged plan of reorganization, follows confirmation of the plan on December 4, 2009 by Judge Kevin J. Carey of the United States Bankruptcy Court for the District of Delaware. The reorganization plan did not involve Nortek's international subsidiaries, which have continued to operate in the normal course of business.
As a result of the reorganization, approximately $1.3 billion of debt has been eliminated.
"This reorganization process has clearly made Nortek a financially healthier and stronger company that is better positioned for the future,” Nortek chairman and CEO Richard L. Bready said. “We were able to achieve our goal of successfully emerging from prepackaged bankruptcy in a short period of time due, in large part, to the extraordinary cooperation of our bondholders and lenders. We sincerely appreciate the support we also received from employees, customers, suppliers, and various business partners.”
Bready added that the success of the financial restructuring, together with a new $250-million asset-based credit facility that is now available for general business operations, provides Nortek with the necessary flexibility to meet its liquidity needs and fund future growth opportunities.
“With the restructuring behind us, my senior management team and I look forward to continuing to provide market leading products and service to loyal customers around the world," Bready added.
Throughout the restructuring process Nortek was able to operate in the normal course of business, pay its employees wages and benefits, pay suppliers and vendors, and fulfill all customers programs and product warranties, according to the company.