Formica's plan of reorganization confirmed
On July 1, 2003, the court approved a stock purchase agreement with an investment group sponsored by Cerberus Capital Management L.P. and Oaktree Capital Management LLC under which the investment group committed to invest $175 million in cash in Formica and its subsidiaries. Upon emergence, these investors will own approximately 95 percent of the common stock of the new parent company of Formica Corp.
Upon emergence, Formica's consolidated debt will be approximately $160 million, as compared to more than $540 million of debt at the time of the filing. Formica also announced that on the effective date of the plan it will enter into a $65 million revolving credit facility to be provided by The Foothill Group Inc., an affiliate of Wells Fargo Foothill Inc.