Court Approves "Pre-Packaged" Plan
of Reorganization Allowing Company to Emerge from Chapter 11 with
Restructured Balance Sheet
Company Receives Commitment for $30 Million in Exit Financing
Latham, N.Y. (January 22, 2010) - Latham International ("Latham" or the "Company"), the largest manufacturer of in-ground residential swimming pool components in North America, announced today that it has received confirmation of its "pre-packaged" Plan of Reorganization (the "Plan") from the United States Bankruptcy Court for the District of Delaware. The Court's ruling allows the Company to implement the terms of the debt restructuring agreement with Latham's senior secured lenders that is the basis of the Plan, and to emerge from Chapter 11 within the next few days with a stronger balance sheet.
As a result of the restructuring, Latham has eliminated more than $180 million from its balance sheet, which represents an approximately 90% reduction in the amount of the company's pre- petition debt.
"This is an exciting day for Latham, and we obviously are extremely pleased by the Court's approval of our Plan of Reorganization," said Mark P. Laven, Chief Executive Officer of Latham International. "When we emerge from Chapter 11, Latham will have a much healthier balance sheet, which will improve our ability to take advantage of the strength of our operations in order to further grow our market leading position." Upon its emergence, Latham will be owned by an entity controlled by certain of the Company's former senior lenders, including Littlejohn & Co., a private investment firm based in Greenwich, CT. In addition, Latham has received a commitment from Bank of America for a $30 million revolving credit facility, which, at the time of the Company's emergence, will be undrawn and available to provide funding for the Company's operations and seasonal working capital needs.
On December 22, 2009, Latham and its U.S. affiliates filed voluntary petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code. On that day Latham also filed the pre-packaged Plan which had received the required approval from the Company's senior secured lenders. "We successfully completed our Chapter 11 financial restructuring in a month, which is a remarkable achievement," said Mr. Laven. "In addition, we accomplished our goal of going through this process with minimal impact on our employees, customers and suppliers. These results are a testament to the outstanding effort put forth by the senior management team, Latham's employees, our Board of Directors, our senior lenders and our outside professionals. In particular, I would also like to thank our customers and suppliers for their support and understanding during our financial restructuring."
Mr. Laven added, "During the past few years we have taken several steps to improve our operational performance. As a result, we continue to grow our market share and generate positive EBITDA. Now that we have finalized our debt restructuring and strengthened our balance sheet, we can utilize our resources to make the necessary investments to improve and grow our business even further. Along with our Board of Directors and the rest of the senior management team, I am committed to building Latham into a stronger, more successful company."
For more information about the Chapter 11 case, including access to Court documents, please visit http://chapter11.epiqsystems.com/latham. ## #
ABOUT LATHAM INTERNATIONAL Latham International is the largest manufacturer of swimming pool components and pool accessories in North America. Latham offers a broad product line, including in-ground and above ground vinyl liners, polymer and steel pool wall systems, fiberglass pools, steps, ladders, pool safety covers, automatic pool covers and a variety of other pool related accessories.