As part of the agreement, the company agreed to the restructuring plan by filing a voluntary petition for Chapter 11 reorganization under U.S. Bankruptcy Code. The Chapter 11 filing was made in U.S. Bankruptcy Court for the Southern District of New York. Formica's subsidiaries outside of the U.S. are not part of the filing and it is not anticipated that they will be affected by the filing.
The debtor-in-possession (DIP) revolving credit loan will be used to augment Formica's $22 million cash on hand for working capital, capital improvements and restructuring expenses of the Company and its international affiliates.
Formica president and CEO Frank A. Riddick III said that Formica's operations will continue as usual, without interruption, during the restructuring process.
"The restructuring will have no impact on our ability to fulfill our obligations to our employees or to our customers," he said. "During the restructuring period and beyond, we will continue to deliver the highest quality products to our customers, on time, to invest in new product and technology, and develop new business. Our vendors will be paid in the ordinary course for all goods furnished and services rendered subsequent to the filing."
He also emphasized that Formica's operations outside the U.S. are excluded from the filing, so will not be impacted on their ability to continue to manufacture product and meet the needs of customers, employees and suppliers.
Formica Corporation, whose owners include Credit Suisse First Boston Private Equity, Citicorp Venture Capital, Ltd. and CVC Capital Partners Limited, was founded in 1913, and is a prominent worldwide manufacturer and marketer of decorative surfacing materials, including high pressure laminate solid surfacing materials and laminate flooring.