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Panolam Announces Agreement Regarding Restructuring.

SHELTON, Conn. -- Panolam Industries International, Inc. (the "Company") today announced that it has entered into a consensual Restructuring Support Agreement with affiliates of Apollo Capital Management and Eaton Vance Eaton Vance is an American financial services company headquartered in Boston, MA. It is traded on the New York Stock Exchange under the symbol EV.[1] At the end of the second quarter of the 2006 fiscal year, the company had assets under management of $118.8 billion.  Management, which together hold a supermajority Supermajority

A corporate amendment in a company's charter requiring a large majority (anywhere from 67%-90%) of shareholders to approve important changes, such as a merger.
 of the principal amount of the Company's senior subordinated notes, holders of a supermajority of the principal amount of the Company's senior debt, and Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. , the agent for such senior lenders (collectively, the "Consenting Holders"). The restructuring contemplated by the Restructuring Support Agreement will enable the Company to reduce the amount of debt on its balance sheet by approximately $151 million (or approximately 44%) and eliminate approximately $16.2 million in annual cash interest payments on its senior subordinated notes.

The Restructuring Support Agreement requires the Consenting Holders to vote in favor of and support the proposed prepackaged pre·pack·age  
tr.v. pre·pack·aged, pre·pack·ag·ing, pre·pack·ag·es
To wrap or package (a product) before marketing.

Adj. 1.
 plan of reorganization of the Company and its domestic subsidiaries (the "Plan"). Under the Plan, the senior debt will be exchanged for a combination of cash and notes of the reorganized company, the senior subordinated notes will be exchanged for shares of common stock of the reorganized company and all existing equity interests will be cancelled in exchange for warrants to acquire shares of common stock of the reorganized company under certain circumstances. The claims of all general unsecured creditors will be reinstated or unimpaired Adj. 1. unimpaired - not damaged or diminished in any respect; "his speech remained unimpaired"
undamaged - not harmed or spoiled; sound

uninjured - not injured physically or mentally
, which means that, under the Plan, the Company will honor all obligations to its customers, pay all vendors and suppliers in the normal course of business and continue to pay wages and benefits to it employees as usual.

The Company expects to launch a formal solicitation of votes for the Plan from its creditors within approximately 10 days. Creditor voting on the Plan will be completed within 30 days after the solicitation is launched. Upon receiving the requisite formal acceptances, the Company will commence a voluntary prepackaged Chapter 11 proceeding in order to implement the Plan. A supermajority of the senior lenders holding approximately 83% of the senior debt and a supermajority of the senior subordinated noteholders holding approximately 66% of the senior subordinated notes have signed the Restructuring Support Agreement. The Company does not anticipate any delays in obtaining 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.  approval since the Plan is prepackaged and expects that the Plan will be confirmed by the bankruptcy court before the end of the 2009 calendar year.

Mr. Robert J. Muller, Jr., Chairman and Chief Executive Officer of the Company, said, "We are very pleased to have reached an agreement with our noteholders and with our senior lender group, which underscores their confidence in our business, and represents an important step forward for our company. We appreciate the continuing loyalty of our suppliers, customers, business partners and employees, and this Plan will allow us to emerge with a significantly stronger balance sheet and well positioned to pursue future growth opportunities."

Jason Perri, of Apollo Capital Management, added "We are pleased that all creditor groups were able to agree to a consensual deal that will minimize the impact of this restructuring on the 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.
 that matter most - Panolam's customers, vendors and employees. Management has done a fantastic job of guiding the business through this process, and we look forward to working with the entire Panolam team going forward."

This press release is also available within the "News About Panolam" section of the Company's website at

Panolam Industries International, Inc. is a market leader and innovator in the decorative laminate industry. The Company's products, which are marketed under the widely recognized Panolam[R], Pionite[R], Nevamar[R], and Pluswood[R] brand names, are used in a wide variety of residential and commercial indoor surfacing applications, including kitchen and bath cabinets, furniture, store fixtures, case goods case goods
a. Pieces of furniture, such as bookcases or chests of drawers, that provide interior storage space.

b. Pieces of dining or bedroom furniture sold as sets.

, and other applications. The Company also markets other decorative laminates including FRL FRL - Frame Representation Language.


["The FRL Manual", R. Roberts et al, AI Memo 409, MIT AI Lab, 1977].
, a fiber reinforced laminate product. In addition to decorative laminates, the Company manufactures and distributes industrial laminate products, including Conolite and Panolam FRP FRP Fremskrittspartiet (Norwegian: Progress Party; political party)
FRP Fiberglass-Reinforced Plastic
FRP Fiber Reinforced Polymer
FRP Fibre Reinforced Polymer
FRP Fleet Response Plan (US Navy) 
, a fiber reinforced product. The Company also produces and markets a selection of specialty resins for industrial uses, such as powdered paint, adhesives and melamine resins for decorative laminate production, custom treated and chemically prepared decorative overlay papers for the high pressure laminates, or HPL HPL - Language used in HP9825A/S/T "Desktop Calculators", 1978(?) and ported to the early Series 200 family (9826 and 9836, 68000). Fairly simple and standard, but with extensive I/O support for data acquisition and control (BCD, Serial, 16 bit custom and IEEE 488 interfaces), , industry and the thermally-fused melamine melamine (mĕl`əmēn'), common name for 2,4,6-triamino-1,3,5-triazine. Melamine is a trimer (see polymer) of cyanamide, H2NC≡N, and is synthesized from calcium carbide. , or TFM TFM Traffic Flow Management
TFM TeX Font Metrics
TFM Transportacion Ferroviaria Mexicana
TFM Trusted Facility Manual
TFM Testicular Feminization
TFM Total Facility Management
TFM Tentative Final Monograph
TFM Transaction Flow Manager
TFM Thermally Fused Melamine
, industry, and a variety of other industrial laminate products such as aircraft cargo liners and bowling lanes.

This press release and other written reports and oral statements made by the Company may include forward-looking statements, all of which are subject to risks and uncertainties. One can identify these forward-looking statements by their use of words such as "may", "might", "expects", "plans", "would", "estimates", "intends", "forecasts", "projects" and other words of similar meaning, or by the fact that they do not relate strictly to historical or current facts. These statements are likely to address, but may not be limited to, and are subject to factors such as the Company's solicitation of votes from its creditors in support of the Plan and the approval of the Plan by such creditors and the ultimate confirmation of the Plan by a court; the Company's strategies relating to relating to relate prepconcernant

relating to relate prepbezüglich +gen, mit Bezug auf +acc 
 growth and cost containment cost containment,
n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan.
, including facility closures; and ongoing conditions in the door manufacturing and housing industries. Readers must carefully consider any such statements and should understand that many factors could cause actual results and developments to differ materially from the Company's forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other known and unknown risks and uncertainties, including: general economic, market and business conditions; levels of construction and renovation activity; competition; financing risks; ability to manage expanding operations; commitments; new services; retention of key management personnel; environmental and other government regulation; issues arising in connection with the consent solicitation Consent Solicitation

A solicitation by one party to the stakeholders of a particular security for the consent of a material change.

Should the majority of stakeholders provide valid consent prior to the consent expiry date, the issuer may then follow through with
 or confirmation of the Plan; and other factors disclosed by the Company in its filings from time to time with 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.  Securities and Exchange Commission. No forward-looking statement can be guaranteed and actual future results may vary materially. Therefore, we caution you not to place undue reliance on our forward-looking statements. The Company disclaims any responsibility to update these forward-looking statements, whether as a result of new information, future events or otherwise.
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Publication:Business Wire
Date:Sep 30, 2009
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