NORTEK EMERGES FROM BANKRUPTCY
PROVIDENCE, RI, December 17, 2009 - Nortek, Inc. and its affiliated domestic companies (collectively, the "Company") today announced they have completed their financial restructuring and emerged from bankruptcy.
The emergence, which came only 57 days after the filing of a prepackaged plan of reorganization, follows confirmation of the plan on December 4, 2009 by Judge Kevin J. Carey of the United States Bankruptcy Court for the District of Delaware. The reorganization plan did not involve Nortek’s international subsidiaries, which have continued to operate in the normal course of business.
As a result of the reorganization, approximately $1.3 billion of debt has been eliminated.
Nortek, through its various subsidiaries, is a leading diversified global manufacturer of innovative, branded residential and commercial ventilation, HVAC and home technology convenience and security products.
Richard L. Bready, Chairman and Chief Executive Officer, said, "This reorganization process has clearly made Nortek a financially healthier and stronger company that is better positioned for the future. We were able to achieve our goal of successfully emerging from prepackaged bankruptcy in a short period of time due, in large part, to the extraordinary cooperation of our bondholders and lenders. We sincerely appreciate the support we also received from employees, customers, suppliers, and various business partners."
"The success of the financial restructuring, together with a new $250 million asset-based credit facility that is now available for general business operations, provides Nortek with the necessary flexibility to meet its liquidity needs and fund future growth opportunities. With the restructuring behind us, my senior management team and I look forward to continuing to provide market leading products and service to loyal customers around the world," Mr. Bready added.
Throughout the restructuring process Nortek was able to operate in the normal course of business, pay its employees wages and benefits, pay suppliers and vendors and fulfill all customers programs and product warranties.
Nortek’s financial advisers were the Blackstone Group and Alix Partners LLP. Its legal advisers were Weil, Gotshal & Manges LLP and Richards, Layton & Finger P.A.
About Nortek
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. 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.
