Taylor-Wharton International LLC (TWI), has successfully emerged from Chapter 11 restructuring and now implemented its court-authorised Plan of Reorganisation.
TWI is a leading global manufacturer of pressure vessels and precision valves for gas applications and in a significant development for the industrial gases business, its emergence from Chapter 11 brings to an end eight months of business restructuring.
The announcement follows the news that TWI had completed the sale of the assets of its Huntsville, Alabama cylinder operations and certain of the assets of its Harrisburg, Pennsylvania cylinder operations to the Norris Cylinder Company, as part of its restructuring.
While the company’s operations were largely unaffected by the restructuring, TWI managed to streamline certain of its functions, reduce overhead and operating expenses and realign its operations around its three business lines. Hence, TWI completed the sale of the aforementioned operations to Norris – allowing the company to focus on its American Welding and Tank, Sherwood Valve and Taylor Wharton Cryogenics businesses.
“Taylor-Wharton has emerged from Chapter 11 as a stronger company with the financial flexibility, commitment and expertise to deliver industry leading excellence and products to our customers,” said Bill Corbin, Chairman and CEO of TWI.
“When Taylor-Wharton filed for Chapter 11 protection eight months ago, it was vital that the company re-align its capital structure with current business operations, increase its financial flexibility, and continue to honor commitments to its customers and suppliers. I am pleased to report the company successfully achieved all of those goals.”
Taylor-Wharton consummated the restructuring of its domestic operations through a pre-arranged Plan of Reorganisation. The plan reduced the company’s debt obligations by more than 50% and provided for the investment of new equity capital by the mezzanine holders and the company’s financial sponsors. Additionally, Taylor-Wharton’s lenders agreed to provide the company with improved terms and access to a $25m credit facility.
“By having an agreement in place with key financial stakeholders early in the process, we were able to accomplish the restructuring quickly and efficiently, with little to no disruption to our customers or to our supply chain,” Corbin said.
The US Bankruptcy Court for the District of Delaware confirmed the plan on 26th May 2010.