International Aluminum Corp. Receives Plan of Reorganization Confirmation
May 3, 2010

International Aluminum Corp. in Monterey Park, Calif., parent company of United States Aluminum, RACO Interior Products, International Extrusion Corp. and others, has announced that its Plan of Reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware.

“We have accomplished what we set out to do and are very enthusiastic about our company’s future outlook,” says Dick Almy, chief executive officer. “Having dramatically reduced our financial debt and strengthened our balance sheet, we are now well-positioned to emerge as a stronger, more competitive company, ready for future growth, while continuing to offer superior products and outstanding customer service.”

Under the confirmed plan, the company’s secured indebtedness will be satisfied through a combination of new equity, new term notes and a cash payment to its senior lenders. According to court documents, those terms include: “cash on hand of the loan parties in excess of $20 million (net of actual and estimated costs and expenses of the restructuring … as of the effective date of closing);” 100% of the common equity of [IAC] Holdings as reorganized;” and “a 5-year loan in the aggregate principal amount of $38 million …”

Trade vendors and suppliers are to receive full payment of all pre-Chapter 11 claims upon the company’s effective date or in the ordinary course of business.

The company first filed in January 2010 (CLICK HERE for related story) and expects to emerge from Chapter 11 this month, upon which point it will be known as International Architectural Group LLC (IAG). Its brands—United States Aluminum, Raco Interior Products, International Window and International Extrusion—will retain their names. IAG will continue to manufacture and sell aluminum and vinyl products. Customers, employees and other partners will not be affected by the new corporate structure. The reorganization plan notes, “…[A]ll employee compensation and benefit plans … entered into before or after the Commencement Date and not since terminated shall be deemed to be, and shall be treated as if they were, executory contracts to be assumed pursuant to the Plan.” Warranties, too, are unaffected by the reorganization.

Following the reorganization, “The operation of Reorganized Holdings shall become the general responsibility of its board of directors … The initial board of directors of Reorganized Holdings shall consist of five directors, one of whom shall be Richard E. Almy, two of whom shall be independent directors unaffiliated with either the Debtors or the holders of the Credit Agreement Claims and two members whom shall be selected by the holders of the Credit Agreement Claims,” the court documents report.

“The formation of IAG marks a new era of our company’s 50-year history,” says Almy. “Relieved of any burdensome debt, the new IAG entity will capitalize on the assets of IAC’s success.”

CLICK HERE to read the full plan.

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