Court Approves Atrium Plan to Emerge from Bankruptcy
Atrium Companies Inc., the Dallas-based manufacturer of vinyl and aluminum windows and patio doors, reports that the U.S. Bankruptcy Court for the District of Delaware has authorized the company’s entry into an equity purchase agreement with Golden Gate Capital and Kenner & Co. in conjunction with Atrium’s plan of reorganization. Atrium must still get final approval of its plan from creditors.
The court decision follows shortly on the heels of press reports that Griffon Corp., parent company of garage door maker Clopay Building Products, was going to submit a bid to purchase Atrium.
Court approval paves the way for Golden Gate and Kenner & Co. to acquire 92.5 percent of the reorganized Atrium upon its emergence from chapter 11, the manufacturer reports. Atrium's bondholders would receive the remaining 7.5 percent equity interest. Atrium is now authorized to begin soliciting votes from creditor groups on the reorganiztion plan, with a final court hearing for final approval of the plan scheduled for the end of April.
“We are extremely pleased with the result of the court’s ruling,” says Gregory T. Faherty, Atrium president and CEO. “Golden Gate Capital, as majority owner, in partnership with Kenner & Co., our current equity sponsor, would bring significant financial resources and industry knowledge that will well position Atrium to take advantage of the eventual rebound in the housing market.”
Under the reorganization plan, as initially announced, Atrium was seeking to reduce its debt by more than $350 miilion. Information on the plan is provided in a special section of the Atrium Web site.