Wolverine Tube Files for Chapter 11
Wolverine Tube Inc., Huntsville, Ala., has filed for Chapter 11 bankruptcy protection under an agreement with its noteholders to restructure its debt. The company expects to emerge from Chapter 11 within approximately 90 days and will continue operations during the restructuring process.
"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," says Steven S. Elbaum, Wolverine chairman.
The company shut down its U.S. plumbing tube business in 2007. "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 supplies tubing in copper and other nonferrous alloys to the HVAC, refrigeration and appliance, electronics cooling, power generation, petrochemical and chemical processing markets.