NTK Holdings Inc. (Nortek), a Providence, R.I.-based maker of ventilation, air conditioning and heating products, has completed its financial restructuring and emerged from Chapter 11 bankruptcy. The restructuring eliminated around $1.3 billion in debt, and includes a new $250 million asset-based credit facility for working capital. Prior to its bankruptcy, Nortek had been owned by THL Partners.
Nortek, Inc. and its affiliated domestic companies (collectively, the “Company”) today announced they 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.
Nortek, through its various subsidiaries, is a leading diversified global manufacturer of innovative, branded residential and commercial ventilation, HVAC and home technology convenience and security products.
Richard L. Bready, Chairman and Chief Executive Officer, said, “This reorganization process has clearly made Nortek a financially healthier and stronger company that is better positioned for the future. 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.
“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,” Mr. 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.
Nortek’s financial advisers were the Blackstone Group and Alix Partners LLP. Its legal advisers were Weil, Gotshal & Manges LLP and Richards, Layton & Finger P.A.
Nortek (through its subsidiaries) is a leading diversified global manufacturer of innovative, branded residential and commercial ventilation, HVAC and home technology convenience and security products. Nortek offers a broad array of products including: range hoods, bath fans, indoor air quality systems, medicine cabinets and central vacuums, heating and air conditioning systems, and home technology offerings, including audio, video, access control, security and other products.