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 Window Corp.

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 future growth."

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 release.

"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."

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