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
We have accomplished what we set out to do and are very enthusiastic
about our companys 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
Under the confirmed plan, the companys 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
Trade vendors and suppliers are to receive full payment of all
pre-Chapter 11 claims upon the companys 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 brandsUnited States Aluminum, Raco Interior
Products, International Window and International Extrusionwill
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
[A]ll employee compensation and benefit
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
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 companys
50-year history, says Almy. Relieved of any burdensome
debt, the new IAG entity will capitalize on the assets of IACs
to read the full plan.
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