CORRECTING and REPLACING GenTek's Plan of Reorganization Confirmed; Clears Path To Emerge From Chapter 11.Business Editors CORRECTION...by GenTek Inc. PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 7, 2003 In BW5740 issued Oct. 7, 2003: Fourth graph, second sentence of release should read: other unsecured creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. owning up to 2 percent (sted other unsecured creditors owing up to 2 percent). The corrected release reads: GENTEK'S PLAN OF REORGANIZATION CONFIRMED; CLEARS PATH TO EMERGE FROM CHAPTER 11 GenTek Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : GNKIQ), a diversified manufacturer of telecommunications and other industrial products, today reported that the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Delaware confirmed the company's Plan of Reorganization ("the Plan"). GenTek expects the Plan to become effective shortly and remains on target to emerge from Chapter 11 within approximately 30 days. "Today's action by the Court is the last critical milestone on GenTek's path to emergence from Chapter 11," said Richard R. Russell, President and Chief Executive Officer of GenTek. "During the course of the company's Chapter 11 case, we consistently emphasized that GenTek's reorganization was a balance-sheet restructuring only. The Plan confirmed by the Court today reflects just that - a restructuring that substantially reduces GenTek's leverage and positions the company to execute on its strategic and operational objectives. We greatly appreciate the dedication of our employees and the trust and support of our customers and suppliers throughout the restructuring process, and we look forward to working closely with our new board of directors to maximize value in the future." Upon emergence, the Plan provides for new aggregate balance-sheet debt of approximately $280 million, considerably less than the $950 million in funded debt Funded Debt Long-term debt that matures after more than one year. Notes: This is usually issued as a bond or a long-term note. See also: Bond, Debt, Maturity, Note Funded debt Debt maturing after more than one year. when the company filed for protection under Chapter 11 on Oct. 11, 2002. GenTek also announced that on the effective date of the Plan it will enter into a $125 million multi-year revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, which will be used to fund working-capital requirements, pay Plan obligations and for other general corporate purposes. Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. is the lead arranger Lead arranger The senior tier of arranger and syndication agent on this credit facility. For more than a year, the company worked closely with its principal creditor groups to develop a plan that will maximize value for all stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . Upon emergence, pre-petition senior secured lenders will own approximately 94 percent of the new common stock of the company, with unsecured bondholders owning approximately 4 percent and trade and other unsecured creditors owning up to 2 percent. The company's existing common stock (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : GNKIQ) will be cancelled as of the effective date. About GenTek Inc. GenTek Inc. is a diversified manufacturer of telecommunications and other industrial products. Additional information about the company is available on GenTek's Web site at www.gentek-global.com. This announcement includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . GenTek has based these forward-looking statements on its current expectations and projections about future events. Although GenTek believes that its assumptions made in connection with the forward-looking statements are reasonable, no assurances can be given that its assumptions and expectations will prove to have been correct. These forward-looking statements are subject to various risks, uncertainties and assumptions. GenTek undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further information on factors that could affect GenTek's financial and other results is included in the company's Forms 10-Q and 10-K filed with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this announcement might not occur. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion