Formica gets court approval to proceed with Cerberus and Oaktree Investment Proposal
WARREN, N.J. -- Formica Corp. reports that the U.S. Bankruptcy Court for the Southern District of New York has approved the Stock Purchase Agreement involving the company and all of its
subsidiaries with an investment group sponsored by Cerberus Capital Management
L.P. and Oaktree Capital Management LLC. Cerberus and Oaktree are the largest holders of Formica bonds.
The Stock Purchase Agreement calls for the investment group to invest $175 million. Of that amount, $173 million will be used to repay secured bank debt. This would leave Formica with approximately $160 million of senior secured debt remaining in the reorganized business in a transaction valued at $427 million. Formica had more than $540 million in debt at the time of
its Chapter 11 filing. Additionally, the Court approved a 60-day extension for the company to exclusively file a Plan of Reorganization.