International Aluminum Enters Restructuring Agreement
In a move designed to significantly reduce its debt, International Aluminum Corp., parent company of International Window Corp. and United States Aluminum, has filed voluntary petitions to reorganize under Chapter 11 bankruptcy code. The company has entered into a restructuring agreement with holders of about 72 percent of its senior debt, which will allow the company to maximize its product offerings, customer experience, and profitability for long-term succes, officials note.
The manufacturer of aluminum and vinyl products has already filed its plan of reorganization with the court and intends to move swiftly through the process to permit an expedited exit from bankruptcy, officials report. It also plans to operate its businesses without interruption during the restructuring process.
“International Aluminum Corp. is a strong and viable company," says Dick Almy, CEO. "We are securing the company’s long-term future by taking this decisive action to restructure our debt and strengthen our balance sheet. We believe that through this process the company will emerge stronger, more competitive, and unburdened by debt allowing for future growth.”
The restructuring comes in response to the unprecedented downturn in both residential and commercial construction sectors, causing a severe decline in the purchase and use of aluminum and vinyl products. “Like many other manufacturing companies in the United States, the protracted recession has had a dramatic impact on our ability to manage debt costs and comply with our debt guidelines,” Almy notes. “But International Aluminum is resolute and committed to the future, and we believe that this restructuring will ultimately benefit our customers, business partners and employees.”
Company officials note that International Aluminum is seeking authority from the court that will enable it to continue to honoring all customer programs such as warranties and to continue to pay salaries and provide benefits to employees. In addition, the company is said to be in a very strong cash position, allowing it to continue to support its day-to-day and ongoing operations, including paying vendors and suppliers for goods and services provided after the company’s Chapter 11 case filings. Its proposed reorganization plan also provides for the full payment of all pre-Chapter 11 claims of the company’s vendors and suppliers, it is noted.
International Aluminum's International Window manufactures residential and light commercial aluminum and vinyl windows and doors at facilities in California and Arizona.
The company has established a section on its Web site providing more information about its restructuring process.