Formica Corp. recently announced that it has taken an important step necessary to implement the restructuring of its balance sheet and emerge from Chapter 11. It has signed a stock purchase agreement with an investment group sponsored by Cerberus Capital Management
L.P. and Oaktree Capital Management LLC under which they have committed to invest
$175 million in the company.
Cerberus and Oaktree are investment management companies and the two largest holders of unsecured claims in Formica's Chapter 11 case. The company has received the support of its secured lenders for the transaction with Cerberus and Oaktree.