BANKRUPTCY COURT APPROVES NORTEK’S PREPACKAGED FINANCIAL RESTRUCTURING PLAN
PROVIDENCE, RI, December 4, 2009 - NTK Holdings, Inc., Nortek Holdings, Inc., Nortek, Inc. ("Nortek"), and Nortek’s domestic subsidiaries (together, the "Debtors") today announced that the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") has confirmed the Company’s prepackaged plans of reorganization. Nortek expects to emerge from bankruptcy as a reorganized company as expeditiously as possible.
The Bankruptcy Court’s plan confirmation, which was granted by Judge Kevin J. Carey, follows previous approval of a number of motions by the Debtors requesting permission to pay trade creditors any balances that were incurred prior to the Debtors’ chapter 11 filings on October 21, 2009; pay all salaries and wages to employees; honor all customer programs and product warranties; and continue to use cash on hand for general business operations.
Richard L. Bready, Chairman and Chief Executive Officer, said, "Approval from the court is a major milestone in our reorganization process. We appreciate the cooperation we have received from our employees, customers, suppliers, business partners, and bondholders, whose collective support helped us navigate this complex process."
As stated previously, Nortek has a commitment for a $250 million asset-backed credit facility which will be available for general business operations when the Debtors emerge from bankruptcy.
Nortek (through its subsidiaries) is a leading diversified global manufacturer of innovative, branded residential and commercial ventilation, HVAC and home technology convenience and security products. Nortek offers a broad array of products including: range hoods, bath fans, indoor air quality systems, medicine cabinets and central vacuums, heating and air conditioning systems, and home technology offerings, including audio, video, access control, security and other products.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this discussion and throughout this document, words, such as "intends", "plans", "estimates", "believes", "anticipates" and "expects" or similar expressions are intended to identify forward-looking statements. These statements are based on Nortek's current plans and expectations and involve risks and uncertainties, over which Nortek has no control, that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and operating results to differ include the availability and cost of certain raw materials, (including, among others, steel, copper, packaging materials, plastics and aluminum) and purchased components, the level of domestic and foreign construction and remodeling activity affecting residential and commercial markets, interest rates, employment, inflation, foreign currency fluctuations, consumer spending levels, exposure to foreign economies, the rate of sales growth, price, product and warranty liability claims, any amendments to the Plan of Reorganization, whether or not the Plan of Reorganization is confirmed by the bankruptcy court, and whether or not Nortek and its domestic subsidiaries conclude their chapter 11 cases in the anticipated timeframe or at all. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Nortek undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to Nortek or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Readers are also urged to carefully review and consider the various disclosures made by Nortek, herein, as well as its periodic reports on Forms 10-K, 10-Q and 8-K, filed with the Securities and Exchange Commission.
