Shelton, Connecticut - US laminates and resins group Panolam Industries International Inc. said 4 Nov that it has set up a voluntary debt restructuring programme under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court in Delaware.
Panolam previously announced that it would gain restructuring support from holders of a majority of the principal amount of its senior subordinated notes, led by Apollo Capital Management and Eaton Vance Management, and Credit Suisse, the agent for such lenders.
This restructuring will significantly reduce Panolam's debt - by about $151 million or 44 percent -- and put it in a stronger financial position for the future. The Company's non-US operation is legally separate and is not included in the Chapter 11 filing.
Panolam said it will continue to operate normally and will honour all obligations to customers, vendors, suppliers and employees.
Panolam is well known in the decorative laminate industry, with products used in a wide variety of residential and commercial indoor surfacing applications, including kitchen and bath cabinets, furniture, store fixtures, case goods, and other applications.
It also has speciality resins business whose products include Piothane polyester resins used in a variety of PU-based products such as coatings, adhesives, sealants, elastomers, thermoplastics, foams, and microcellular products.