Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
WLVT and a private company owned by WLVT Company officers.
After doing some more digging I found a startling suprise. According to WLVT's Financials for 2nd Quarter (available on companies website) they do Business with a private company called EXEON. This company supplies Copper and Aluminum wire products to WLVT to process in to finished goods. The 2nd quarter has WLVT increasing their profit with EXEON by 47.3% over last year.
Now the Suprise. EXEON's president is none other than Mr. Harold Karp the president and CEO of WLVT. EXEON has a 609% increase in profits from the same time last year. This private company is ran by WLVT's officers. There is alot more to WLVT than meets the eye.
Source: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=4817130
WLVT PR concerning the Pension Guaranty program.
Wolverine Tube Files Notice with the Pension Benefit Guaranty Corporation to Terminate Pension Plan
HUNTSVILLE, Ala., June 16 /PRNewswire/ -- Wolverine Tube, Inc. ("Wolverine") announced today that it will be initiating formal action with the Pension Benefit Guaranty Corporation (the "PBGC") to terminate the Wolverine Tube, Inc. Retirement Plan (the "Plan") in what is known as a "distress termination". The Plan was frozen effective February 28, 2006 and future benefit accruals ceased as of that date. Wolverine's Board of Directors has determined that Wolverine can no longer afford the ongoing contributions necessary to maintain the Plan and, accordingly, Wolverine will be asking the PBGC to approve the termination of the Plan. Wolverine is hopeful that it will be able to work with the PBGC to resolve all Plan liabilities pursuant to terms that are acceptable to the PBGC and affordable for Wolverine.
The initial determination by the Plan's actuary is that under current PBGC guidelines, earned retirement benefits for almost all participants in the Plan would be fully guaranteed by the PBGC and not reduced as a result of the distress termination (this is subject to review and approval by the PBGC). Wolverine is communicating directly with all Plan participants regarding the termination action and the impact it may have on their benefits, if any.
"This action is a necessary step in the continued strengthening of Wolverine's capital structure and will allow available cash flow to be invested in its business and in job creation," said Harold Karp, President and Chief Operating Officer. "We are pleased that the PBGC guarantee program should be able to protect the full earned retirement benefits of as many of our current and former employees as possible."
If the PBGC does not accept the proposal the next step for WLVT is BK. As we see this happened on 1 NOV 2010. This step was needed to try and force PBGC to accept the terms and conditions. The senior secured notes can be paid in like manner during the BK process, But WLVT already has liquidity capitol with overseas Sibsidiaries.
WLVT due diligence. Wolverine Tubing shut its doors on the Booneville Mississippi facility to operate their Facility in Monterrey, Mexico facility. This facility is in full operation and is very profitable. The period ending July 5th 2010, WLVT had a 47.3% and a 29.3% increase in revenue from the same reporting period last year. According to the 2nd Quarter financials Wolveine has subsidiaries in the netherlands that they have established. The below statement has been taken from the 2nd quarter Financials that is available on the companies website
"Our sources of liquidity are cash and cash equivalents and amounts available from our foreign subsidiaries. We do not currently have any domestic liquidity facilities. We do have a liquidity facility available to use as needed in the Netherlands. The terms and conditions of the Company’s Senior Secured Notes have a provision that allows the Company to secure credit facilities under certain conditions prescribed in the Indenture thereto.
Wolverine has more going for it than some believe. It is a profitable company but has declared CH.11 BK to try and rid itself of the Pension Fund.
WLVT looking to rebound. RSI is turning north with the ACC/DIS turning upo also. THE MACD has slowed its decent looking for a turn around. Yesterday WLVT was shorted over 200K of the 800K traded. Awaiting Company PR on the commons to be retained.
WLVT in the reload zone. yesterday shorts and flips took WLVT down to .008. WLVT is accumulating nicely and looking to rebound. Awaiting company PR on commons to be retained.
I have my shares at .12. I believe shorts today. The last two trading sessions has had over 34% shorts.
We are all still here just a slow volume day today. Alot of stocks taking profit hits from last couple of days.
WLVT my pick for the week.
WLVT up 26%. Chart showing a market correction in the coming sesssions.
As of now we have been accumulating the 5.1M shares sold on Nov 1st and 2nd. The ACC/DIS is coming up nicely. The RSI is slowly rebounding, the MACD is stabilizing here. A nice bounce back to the .03-.04 region is looking better and better. The MM's have been upping their ask on each day we have been trading after Nov 2nd. Two MM's are sitting at the .07 mark.
The next scheduled hearing for WLVT is on Dec 2nd. This is to bring creditors and debtors into the process. As of now there is no trustee involved as per document at the web address. http://www.donlinrecano.net/dr201/wti/Wolverine%20Tube%20Notice%20of%20Commencment%20341%20Meeting%20NOtice.pdf.
WLVT looks to emerge sooner than later. If all parties are in compliance Dec 2nd would look to be a formality and the judge can render such decision on that day. As of now there is no court date beyond DEC 2nd.
WLVT accumulation today 659k and up 21% trading thin to .07
WLVT accumulating. up 21% on 659K.
WLVT is trading so thin. It took me two days to fill here. Everytime I hit the ask the MM's would raise it up.
I agree. The MM's are lined up to .20
WLVT definitely in play this week. Thin to .035.
Its not the reporting thats wrong its the preliminary reporting from the beginning of the process. The judge has the final say on the matter. If judge walsh finds that WLVT's private equity investor is trying to capitolize he can pull the plug and not allow the restructure to go forward. I do not think the commons will be cancelled. If the commons are cancelled then the NOL becomes an issue. The NOL here is huge.
All prelims here point to debt to equity restructuring. Many companies perform this manuever without destroying the equity.
WLVT a Q play looking to test and/or break the .02 area this week. The Ask is air. Try to hit the ask and the MM's will not give at that price. They raise the ask before you can get them. the MM's want this to fly. MOMO will certainly make WLVT a potential 3-5 bagger near term.
WLVT a great Q play.
To all investors looking at WLVT for a possible Q play. First I would like to say this is not a Q play where the company is trying to find financing for continued operations or a company having to sell assets to payoff debt. These Bk's is the death touch to all shareholders and the commons are always cancelled.
WLVT is an debt to equity finance BK. The debtors have already approved in principle to the motions of WLVT to restructure through equity. With these types of Q plays the company is just restructuring debt. WLVT has enough cash on hand to continue operations during the 90 day process. This means they do not have to selloff assets or cancel commons to restructure.
WLVT has not stated they will cancel commons. Their PR points to the commons being intact. The original motion does not state anything about commons being cancelled. this where we on the board have deduced the fact at hand. Bloomberg states one thing and the PR states another.
Many BK plays have kept commons intact (without need for an Equity committee set up by a trustee) case in point the first two BK's for penn traffic. I believe we can all name some BK's that have either kept or dumped the commons.
I do not believe it to be the case here. WLVT has been granted the motion to carry on business with cash on hand. They tend to streamline the business after they had to close two plants. The pension plan is what most companies try to get rid of during a BK process since it eats up alot of profit to continue the pension plan.
The BK restructure plan will be introduced in 30-40 days. This will tell us the true case. We all have to remember that a Q play has alot of risk.
WLVT setting up for a huge run. I was in DGMA when it was .001 and sold at .018.
I agree. WLVT is looking to run. last friday. I tried to buy at .01 when there were three MM's at .01. that PPS stayed there for 15 minutes while I had a bid at ask for those shares. Never got them. Had to go to .012 to get them. I later tagged the .01 area and the ask flew to .014. Right before closing someone tried to tag the .0099 and the MM's moved up to .0138. Very thin here and the MM's do not want to give up shares easily.
This is a U.S trustee. Almost all Ch.11 cases do not need them. The U.S trustee department is notified of the BK proceeding. This is so the U.S. trustee department can appoint a trustee if the Ch.11 is a liquidation (some companies file a Ch.11 BK instead of a Ch.7 in order to maintain one common stock share so they can reatain the shell and the NOL for future purposes. Case in point PTFCQ) not a debt for equity restructuring. I have read and seen that almost 90% of all debt for equity BK's retain their commons.
WLVT will not need a trustee since they will be operating while in BK.
WLVT a new Q play.
I have e-mailed Mr. Karp in hopes of clarifying the company PR and the bloomberg report. There seems to be a major discrepancy in the two.
This is a BK play.
Some here on the board believe that commons will be cancelled. I have not read anywhere that they will. The initial BK filing has no information to the contrary. I have e-mailed Mr. Karp in hopes of clearing this up. Right now this is a BK play with a small share structure and 77% PPS downfall. As we know BK stocks can fly up or down. I believe we can all name a few. Also original reports of commons cancelled by any news agency has in cases been seen as misinterpretation of the facts so early in the process and indeed the shareholders retained their shares.
The reorganization plan will be the clincher here. Next month it will be sent for approval by Judge Walsh.
Right now this is a debt for equity BK. Not a liquidation. There is no trustee because the company will be operating with cash on hand.
If the company did not have liabilities they would not be in BK :)
The plan is to be sent to the judge in the next 35 days. A form 15 was already filed in march 2010. I do not see so far where any commons are to be cancelled. If you are to increase shareholder equity and wipe out that equity then how does this benefit shareholders? Makes no sense. I read the Bloomberg news differently. Bloomberg states all of the debt will be in new commons. That is a debt for equity exchange. That does not mean that commons will be cancelled. If the shareholders are to receive nothing as stated, could mean shareholders will not receive any dividends or PPS devalue difference. Some BK companies when they reemerge from BK (common intact) pay shareholders a dividend for a PPS devalue difference.
New equity can take any form or shape. A Forward split can be cause for a new equity, or a R/S or reissue of shares. The plan will tell all here if they are to be cancelled in which case I do not believe they will.
The reorganization plan will tell the tale here.
P.S. Bloomberg has misreported before.
would you like to share where this information came from? All press releases and share holder information does not say this at all. So if you would share where this came from,and what citation that would be helpful.
Go to Donlin Recano Website and read the motions. And the 115M assets and 235M in liabilities is the reason for the BK. If you have read further you would of seen a gross profit of over 400M. The debts from 2007 onward was eating into profit so the liabilities were larger than realized profit.
WLVT is negating over 110M dollars in debt in 90 days. They will be operating on cash at hand so what does that tell you? They have enough cash to sustain operations for 90 days without borrowing, leveraging or equity dipping.
Just takes time for the MM's to get bored :)
WLVT the undiscovered Q play
WLVT filed for a prearranged Ch.11 with their debtors to rid 110M in debt within 90 Days. Commons will stay intact and the A/S is 40.6M. last year WLVT did over 440M in gross revenue.
Which Q Board?
WLVT the new Q play. WLVT has entered into a Ch.11 as of Nov 1st. On Nov 3rd the judge agreed to all motions presented by Wolverine Tubing.
WLVT is going to be a huge Q play. WLVT already had prior approval from the debtors to restructure the debt through CH.11. The 40.6M Class C (commons) is to remain intact and WLVT will continue operations with cash on hand.
WLVT did over 150M in sales last year, Their debt was 235M from the last three years. A CH.11 was necessary to remove 110M in debt leaving only 30M. WLVT has posted that they see a 200M plus revenue stream for 2011 and beyond.
WLVT is based in Huntsville Alabama and has been in business for 90 years. They were listed on the NYSE (not the Nasdaq making it a blue chip stock at the time) until 2007 due to the economic downturn. They delisted in March of 2010 and remain on pinksheets.
WLVT has three goals in mind 1. Reduce standing debt without using equity (CH.11) 2. Enhance shareholder value (near term), and 3. re-list on the NYSE (Long Term).
This Q play is going to be big. A company that does over 200M in sales each year. The economy down turn in 2007-2008 caught up with WLVT and a restructure was needed. The debtors know what this company is worth and have already agreed in principle to the CH.11 and knowing the commons will remain intact.
QSGIQ was a huge Q runner, along with some others. WLVT with the current share structure and 110M in debt reduced is giving new investors confidence and a Market correction near term is forseen.
I agree. The few minutes of trading confirmed it. The .0099 could not be bought and the ask moved to .0138. Very, Very thin to .03. A 40.6M A/S with 110M in debt to be extinguished, I see WLVT going back to prelevels. The commons intact and WLVT continuing operations tells you the restructure was already approved by the debt holders. In 90 days the share holders in my opinion will be rewarded for being patient.
WLVT on RADAR. WLVT lost almost 84% of its PPS during the Nov 1st and Nov 2nd BK scare. Investors thought of the commons being taken. This is not the case. The CH 11 restructure is for a 90 day period in which Wolverine tubing will settle almost 110M in debt with their creditors. The Commons which now stand at 40.6M A/S will remain intact. WLVT delisted from the NYSE in 2007 due to the down turn of the economy. There focus is to reduce debt (Ch.11), enhance shareholder value (Near term), and relist on the NSYE (Long term).
News article concerning the Shares.
Wolverine Tube, Inc. Reaches Agreement With Noteholders to Restructure Debt
www.prnewswire.com/news-releases/wolverine-tube-inc-reaches-agreement-with-noteholders-to-restructure-debt-106442858.html
Elects to File Voluntary Chapter 11 Petitions to Implement Pre-Arranged Restructuring
Operations Will Continue as Usual
Company to Pay Trade Creditor Claims in Full
Download image
HUNTSVILLE, Ala., Nov. 1, 2010 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc. (OTC Bulletin Board: WLVT), Tube Forming L.P., Wolverine Joining Technologies, LLC, and WT Holding Company, Inc. ("Wolverine" or "the Company"), a publicly held company and a global leader in advanced metal surface technology enhancements for heat transfer solutions, announced that it has reached an agreement in principle with holders of the Company's notes on the terms of a financial restructuring to reduce the company's indebtedness.
(Logo: http://www.newscom.com/cgi-bin/prnh/20081217/CLW110LOGO )
(Logo: http://photos.prnewswire.com/prnh/20081217/CLW110LOGO )
To implement the financial restructuring, Wolverine today elected to file Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware ("the Court") to effectuate a prearranged plan of reorganization supported by Wolverine's noteholders, which plan the Company intends to file shortly. The Company believes the filings will have little impact on its operations, and it will continue operations during the restructuring process. Wolverine expects to emerge from Chapter 11 within approximately 90 days.
The Company believes its cash on hand, together with the cash generated from ongoing operations, will be sufficient to fund its normal business obligations through the financial restructuring.
"Once completed and approved by the Court, the financial restructuring will reduce the Company's debt by approximately $110 million, leaving Wolverine with $30 million of debt at much more attractive terms and a substantial positive shareholder's equity," said Steven S. Elbaum, Chairman of Wolverine. "We are very pleased to have reached this agreement with noteholders. It is a very positive step for Wolverine, our customers, suppliers and employees because it underscores confidence in Wolverine's ability to achieve sustained profitable growth. Over the last three years Wolverine has successfully restructured its operations, improved its cost structure and competitiveness and repaid a substantial amount of debt. It is highly focused on its core business and customers. The announced restructuring will firmly position Wolverine to successfully compete in the global markets it serves."
"On an operational level, Wolverine has a strong foundation in place with a cash position that is more than sufficient to run its business during this period," added Elbaum. "A court-supervised process will accelerate – and finalize – Wolverine's financial restructuring while ensuring that current business operations continue without impediment."
Wolverine has also filed a variety of customary motions to support its employees and suppliers during the restructuring process. As part of these motions, the Company has asked the Court for additional authorizations, including permission to continue paying employee wages and salaries, provide employee benefits, and pay trade creditors in full without interruption.
Wolverine has retained Proskauer Rose and Cozen O'Connor as legal counsel in connection with the restructuring.
Additional information is available at the Company's website www.wlv.com. For access to Court documents and other general information about the Chapter 11 cases, please visit www.donlinrecano.com
About Wolverine Tube, Inc.
Wolverine is a global leader in offering proprietary custom-engineered components that provide a thermal management solution for our customers in multiple markets including HVAC, refrigeration and appliance, electronics cooling, power generation, petrochemical and chemical processing. We deliver the most advanced metal surface technology enhancements for heat transfer solutions in today's marketplace. We have also earned a reputation for having the broadest engineered product offering in the non-ferrous metals market.
Throughout our more than 90-year history, we have utilized our proprietary tooling and process technology to enhance surface geometry for tubular and flat metal surfaces to expand our product lines, effectively meeting our customer's increasing needs for effective enhanced heat transfer performance. Our tailored solutions for many OEM customers are globally recognized.
WLVT on RADAR. On Nov 1st Wolverine tubing decided to go the BK route to restructure debt. Under the plan Wolverine continues operations with cash on hand. Investors got nervous about a BK sold the PPS down almost 84% in two days. They did not read the PR carefully or the court documents. The commons will stay in tact and WLVT will emerge from Bk in 90 days. WLVT has very small share structure. A/S 40.6M shares
Below is the PR from the company. The BK process is handled by Dolin Recano.
Elects to File Voluntary Chapter 11 Petitions to Implement Pre-Arranged Restructuring
Operations Will Continue as Usual
Company to Pay Trade Creditor Claims in Full
Download image
HUNTSVILLE, Ala., Nov. 1, 2010 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc. (OTC Bulletin Board: WLVT), Tube Forming L.P., Wolverine Joining Technologies, LLC, and WT Holding Company, Inc. ("Wolverine" or "the Company"), a publicly held company and a global leader in advanced metal surface technology enhancements for heat transfer solutions, announced that it has reached an agreement in principle with holders of the Company's notes on the terms of a financial restructuring to reduce the company's indebtedness.
(Logo: www.newscom.com/cgi-bin/prnh/20081217/CLW110LOGO )
(Logo: photos.prnewswire.com/prnh/20081217/CLW110LOGO )
To implement the financial restructuring, Wolverine today elected to file Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware ("the Court") to effectuate a prearranged plan of reorganization supported by Wolverine's noteholders, which plan the Company intends to file shortly. The Company believes the filings will have little impact on its operations, and it will continue operations during the restructuring process. Wolverine expects to emerge from Chapter 11 within approximately 90 days.
The Company believes its cash on hand, together with the cash generated from ongoing operations, will be sufficient to fund its normal business obligations through the financial restructuring.
"Once completed and approved by the Court, the financial restructuring will reduce the Company's debt by approximately $110 million, leaving Wolverine with $30 million of debt at much more attractive terms and a substantial positive shareholder's equity," said Steven S. Elbaum, Chairman of Wolverine. "We are very pleased to have reached this agreement with noteholders. It is a very positive step for Wolverine, our customers, suppliers and employees because it underscores confidence in Wolverine's ability to achieve sustained profitable growth. Over the last three years Wolverine has successfully restructured its operations, improved its cost structure and competitiveness and repaid a substantial amount of debt. It is highly focused on its core business and customers. The announced restructuring will firmly position Wolverine to successfully compete in the global markets it serves."
"On an operational level, Wolverine has a strong foundation in place with a cash position that is more than sufficient to run its business during this period," added Elbaum. "A court-supervised process will accelerate – and finalize – Wolverine's financial restructuring while ensuring that current business operations continue without impediment."
Wolverine has also filed a variety of customary motions to support its employees and suppliers during the restructuring process. As part of these motions, the Company has asked the Court for additional authorizations, including permission to continue paying employee wages and salaries, provide employee benefits, and pay trade creditors in full without interruption.
Wolverine has retained Proskauer Rose and Cozen O'Connor as legal counsel in connection with the restructuring.
Additional information is available at the Company's website www.wlv.com. For access to Court documents and other general information about the Chapter 11 cases, please visit www.donlinrecano.com
About Wolverine Tube, Inc.
Wolverine is a global leader in offering proprietary custom-engineered components that provide a thermal management solution for our customers in multiple markets including HVAC, refrigeration and appliance, electronics cooling, power generation, petrochemical and chemical processing. We deliver the most advanced metal surface technology enhancements for heat transfer solutions in today's marketplace. We have also earned a reputation for having the broadest engineered product offering in the non-ferrous metals market.
Throughout our more than 90-year history, we have utilized our proprietary tooling and process technology to enhance surface geometry for tubular and flat metal surfaces to expand our product lines, effectively meeting our customer's increasing needs for effective enhanced heat transfer performance. Our tailored solutions for many OEM customers are globally recognized.
WLVT on RADAR. On Nov 1st Wolverine tubing decided to go the BK route to restructure debt. Under the plan Wolverine continues operations with cash on hand. Investors got nervous about a BK sold the PPS down almost 84% in two days. They did not read the PR carefully or the court documents. The commons will stay in tact and WLVT will emerge from Bk in 90 days. WLVT has very small share structure. A/S 40.6M shares
Below is the PR from the company. The BK process is handled by Dolin Recano.
Elects to File Voluntary Chapter 11 Petitions to Implement Pre-Arranged Restructuring
Operations Will Continue as Usual
Company to Pay Trade Creditor Claims in Full
Download image
HUNTSVILLE, Ala., Nov. 1, 2010 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc. (OTC Bulletin Board: WLVT), Tube Forming L.P., Wolverine Joining Technologies, LLC, and WT Holding Company, Inc. ("Wolverine" or "the Company"), a publicly held company and a global leader in advanced metal surface technology enhancements for heat transfer solutions, announced that it has reached an agreement in principle with holders of the Company's notes on the terms of a financial restructuring to reduce the company's indebtedness.
(Logo: www.newscom.com/cgi-bin/prnh/20081217/CLW110LOGO )
(Logo: http://photos.prnewswire.com/prnh/20081217/CLW110LOGO )
To implement the financial restructuring, Wolverine today elected to file Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware ("the Court") to effectuate a prearranged plan of reorganization supported by Wolverine's noteholders, which plan the Company intends to file shortly. The Company believes the filings will have little impact on its operations, and it will continue operations during the restructuring process. Wolverine expects to emerge from Chapter 11 within approximately 90 days.
The Company believes its cash on hand, together with the cash generated from ongoing operations, will be sufficient to fund its normal business obligations through the financial restructuring.
"Once completed and approved by the Court, the financial restructuring will reduce the Company's debt by approximately $110 million, leaving Wolverine with $30 million of debt at much more attractive terms and a substantial positive shareholder's equity," said Steven S. Elbaum, Chairman of Wolverine. "We are very pleased to have reached this agreement with noteholders. It is a very positive step for Wolverine, our customers, suppliers and employees because it underscores confidence in Wolverine's ability to achieve sustained profitable growth. Over the last three years Wolverine has successfully restructured its operations, improved its cost structure and competitiveness and repaid a substantial amount of debt. It is highly focused on its core business and customers. The announced restructuring will firmly position Wolverine to successfully compete in the global markets it serves."
"On an operational level, Wolverine has a strong foundation in place with a cash position that is more than sufficient to run its business during this period," added Elbaum. "A court-supervised process will accelerate – and finalize – Wolverine's financial restructuring while ensuring that current business operations continue without impediment."
Wolverine has also filed a variety of customary motions to support its employees and suppliers during the restructuring process. As part of these motions, the Company has asked the Court for additional authorizations, including permission to continue paying employee wages and salaries, provide employee benefits, and pay trade creditors in full without interruption.
Wolverine has retained Proskauer Rose and Cozen O'Connor as legal counsel in connection with the restructuring.
Additional information is available at the Company's website www.wlv.com. For access to Court documents and other general information about the Chapter 11 cases, please visit www.donlinrecano.com
About Wolverine Tube, Inc.
Wolverine is a global leader in offering proprietary custom-engineered components that provide a thermal management solution for our customers in multiple markets including HVAC, refrigeration and appliance, electronics cooling, power generation, petrochemical and chemical processing. We deliver the most advanced metal surface technology enhancements for heat transfer solutions in today's marketplace. We have also earned a reputation for having the broadest engineered product offering in the non-ferrous metals market.
Throughout our more than 90-year history, we have utilized our proprietary tooling and process technology to enhance surface geometry for tubular and flat metal surfaces to expand our product lines, effectively meeting our customer's increasing needs for effective enhanced heat transfer performance. Our tailored solutions for many OEM customers are globally recognized.
WLVT setting up to push back to its 52 week high. On Nov 1st WLVT decided to start a CH.11 restructuring. Shareholders got nervous and dumped almost 84% of its value thinking the commons would be cancelled. Here is the PR from the company itself explaining it is not the case.
Wolverine tubing Elects to File Voluntary Chapter 11 Petitions to Implement Pre-Arranged Restructuring
Operations Will Continue as Usual
Company to Pay Trade Creditor Claims in Full
Download image
HUNTSVILLE, Ala., Nov. 1, 2010 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc. (OTC Bulletin Board: WLVT), Tube Forming L.P., Wolverine Joining Technologies, LLC, and WT Holding Company, Inc. ("Wolverine" or "the Company"), a publicly held company and a global leader in advanced metal surface technology enhancements for heat transfer solutions, announced that it has reached an agreement in principle with holders of the Company's notes on the terms of a financial restructuring to reduce the company's indebtedness.
(Logo: www.newscom.com/cgi-bin/prnh/20081217/CLW110LOGO )
(Logo: http://photos.prnewswire.com/prnh/20081217/CLW110LOGO )
To implement the financial restructuring, Wolverine today elected to file Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware ("the Court") to effectuate a prearranged plan of reorganization supported by Wolverine's noteholders, which plan the Company intends to file shortly. The Company believes the filings will have little impact on its operations, and it will continue operations during the restructuring process. Wolverine expects to emerge from Chapter 11 within approximately 90 days.
The Company believes its cash on hand, together with the cash generated from ongoing operations, will be sufficient to fund its normal business obligations through the financial restructuring.
"Once completed and approved by the Court, the financial restructuring will reduce the Company's debt by approximately $110 million, leaving Wolverine with $30 million of debt at much more attractive terms and a substantial positive shareholder's equity," said Steven S. Elbaum, Chairman of Wolverine. "We are very pleased to have reached this agreement with noteholders. It is a very positive step for Wolverine, our customers, suppliers and employees because it underscores confidence in Wolverine's ability to achieve sustained profitable growth. Over the last three years Wolverine has successfully restructured its operations, improved its cost structure and competitiveness and repaid a substantial amount of debt. It is highly focused on its core business and customers. The announced restructuring will firmly position Wolverine to successfully compete in the global markets it serves."
"On an operational level, Wolverine has a strong foundation in place with a cash position that is more than sufficient to run its business during this period," added Elbaum. "A court-supervised process will accelerate – and finalize – Wolverine's financial restructuring while ensuring that current business operations continue without impediment."
Wolverine has also filed a variety of customary motions to support its employees and suppliers during the restructuring process. As part of these motions, the Company has asked the Court for additional authorizations, including permission to continue paying employee wages and salaries, provide employee benefits, and pay trade creditors in full without interruption.
Wolverine has retained Proskauer Rose and Cozen O'Connor as legal counsel in connection with the restructuring.
Additional information is available at the Company's website www.wlv.com. For access to Court documents and other general information about the Chapter 11 cases, please visit www.donlinrecano.com
About Wolverine Tube, Inc.
Wolverine is a global leader in offering proprietary custom-engineered components that provide a thermal management solution for our customers in multiple markets including HVAC, refrigeration and appliance, electronics cooling, power generation, petrochemical and chemical processing. We deliver the most advanced metal surface technology enhancements for heat transfer solutions in today's marketplace. We have also earned a reputation for having the broadest engineered product offering in the non-ferrous metals market.
Throughout our more than 90-year history, we have utilized our proprietary tooling and process technology to enhance surface geometry for tubular and flat metal surfaces to expand our product lines, effectively meeting our customer's increasing needs for effective enhanced heat transfer performance. Our tailored solutions for many OEM customers are globally recognized.
The .012 and .014 is thin. About 300K would take this to the new HOD.