International Aluminum Corp. Files for Bankruptcy
January 5, 2010
International Aluminum Corp., a manufacturer of aluminum and vinyl
products, and parent company to United States Aluminum, filed a
petition for reorganization under Chapter 11 yesterday in the U.S.
Bankruptcy Court for the District of Delaware. The company also
has announced that it has entered into a restructuring agreement
with holders of approximately 72 percent of its senior debt. Company
officials say the goal of the restructuring agreement is to significantly
reduce the company's debt and other guaranteed obligations, allowing
it to maximize its product offerings, customer experience, and profitability
for long-term success.
To facilitate the restructuring agreement, the company and its U.S.
subsidiaries have filed voluntary petitions to reorganize under
Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware (CLICK
HERE to read the voluntary petition.) The subsidiaries are:
IAC Holding Co.; United States Aluminum Corp.; United States Aluminum
Corp. - Carolina; United States Aluminum Corp. - Illinois; United
States Aluminum Corp. - Texas; RACO Interior Products Inc.; General
Window Corp.; International Extrusion Corp. - Texas; International
Extrusion Corp.; International Window - Arizona Inc.; and International
The petition states that the company has between 1,000 and 5,000
creditors (consolidated with affiliates); between $1 and $5 million
in estimated assets (consolidated with affiliates); and between
$1 and $5 million in estimated liabilities (consolidated with affiliates).
A number of companies in the glass and window industry are included
in the consolidated list of creditors holding the 30 largest unsecured
claims. These include: Guardian Industries ($48,636); Glass Equipment
Development ($22, 018); Pemko Manufacturing ($20,902); All Weather
Tempering ($19,301); Northwestern Industries ($15,228); and EPCO
Industrial Contractors ($14, 151).
The company also filed its proposed Plan of Reorganization (CLICK
HERE to read the plan) and related Disclosure Statement and
says it intends to move swiftly through approval of the Disclosure
Statement and confirmation of the Plan by the Court to permit an
expedited exit from bankruptcy. The company's Canadian subsidiaries
are not included in the Chapter 11 filing.
"International Aluminum Corp. is a strong and viable company.
We are securing the company's long-term future by taking this decisive
action to restructure our debt and strengthen our balance sheet,"
says International Aluminum chief executive officer, Dick Almy.
"We believe that through this process the company will emerge
stronger, more competitive, and unburdened by debt, allowing for
Company officials say it is 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 its Chapter 11 filings. The proposed reorganization plan also
provides for the full payment of all pre-Chapter 11 claims of the
company's vendors and suppliers, according to the company press
"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,"
says Almy. "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."
Need more info and analysis about the issues?
HERE to subscribe to USGlass magazine.