Dayton Superior Receives Interim Court Authorization to Draw on $165 Million DIP Credit Facility
April 22 2009 - 3:56PM
Business Wire
Dayton Superior Corporation (NASDAQ: DSUP), the leading North
American provider of specialized products for the nonresidential
concrete construction market, today announced that the U.S.
Bankruptcy Court for the District of Delaware in Wilmington has
granted it interim authorization to borrow from the twelve-month
$165 million debtor-in-possession (DIP) credit facility provided by
GE Capital. The DIP facility authorization will provide immediate
liquidity to the Company to help fund operations during the
reorganization, subject to customary conditions.
The Court also approved the Company�s other �first day motions,�
providing for the continued payment of employee wages and other
compensation, reimbursable employee expenses, and medical and other
benefits without interruption; the continued payment of supplier
invoices on normal terms in the ordinary course of business; the
continuation of customer programs; and the continued use of its
cash collateral and cash management systems.
�With the Court�s authorization to draw on the new credit
facility and otherwise operate as usual, suppliers and customers
should feel confident about continuing to do business with Dayton
Superior,� said Eric R. Zimmerman, Dayton Superior's President and
Chief Executive Officer. �The new credit line, combined with cash
from operations, will enable us to maintain the inventories and
supplies we need to continue to serve our customers. This
authorization represents an important first step in our progress
toward a final capital restructuring.�
As previously announced, Dayton Superior filed a voluntary
petition for reorganization under chapter 11 of the U.S. Bankruptcy
Code in the United States Bankruptcy Court for the District of
Delaware in Wilmington on April 19, 2009. Additional information
about the filing for creditors and other parties will be available
through a link on the Company website, www.daytonsuperior.com.
The Company also announced today that it was notified by The
Nasdaq Stock Market on April 20, 2009 that Nasdaq will suspend
trading of the Company�s common stock on The Nasdaq Global Market,
effective at the opening of business on April 29, 2009 in
accordance with Nasdaq Listing Rules 5100, 5110(b), and IM 5100-1.
The notification also stated that Nasdaq will file a Form 25-NSE
with the Securities and Exchange Commission to remove the Company�s
securities from listing and registration on The Nasdaq Global
Market. The Company does not intend to appeal Nasdaq�s decision and
anticipates that its common stock will be delisted from The Nasdaq
Global Market.
While the Company is in chapter 11, investments in its
securities will be highly speculative. Investors should assume that
shares of the Company's common stock have little or no value and
will likely be cancelled upon consummation of the Company's
reorganization. The outcome of the chapter 11 restructuring case is
uncertain and subject to substantial risk. There can be no
assurance that the Company will be successful in achieving its
financial reorganization.
ABOUT DAYTON SUPERIOR
CORPORATION
Dayton Superior is the leading North American provider of
specialized products consumed in nonresidential, concrete
construction, and we are the largest concrete forming and shoring
rental company serving the domestic, nonresidential construction
market. Our products can be found on construction sites nationwide
and are used in nonresidential construction projects, including:
infrastructure projects, such as highways, bridges, airports, power
plants and water management projects; institutional projects, such
as schools, stadiums, hospitals and government buildings; and
commercial projects, such as retail stores, offices and
recreational, distribution and manufacturing facilities.
Note: Certain statements made herein concerning anticipated
future performance are forward-looking statements. These
forward-looking statements are based on estimates, projections,
beliefs and assumptions of management and are not guarantees of
future performance. Actual future performance, outcomes and results
may differ materially from those expressed in forward-looking
statements as a result of a number of important factors.
Representative examples of these factors include (without
limitation):
- Depressed or fluctuating market
conditions for the Company's products and services;
- operating restrictions imposed
by the Company's existing debt;
- increased raw material costs and
operating expenses;
- the ability to increase
manufacturing efficiency, leverage purchasing power and broaden the
Company's distribution network;
- the competitive nature of the
nonresidential construction industry in general, as well as
specific market areas;
- the Company's ability to obtain
court approval with respect to its motions in the chapter 11
proceedings;
- the ability of the Company to
obtain final approval of and operate pursuant to the terms of the
DIP facility;
- the ability of the Company to
prosecute, develop and consummate a plan of reorganization with
respect to the chapter 11 proceedings;
- risks associated with
third-party motions in the chapter 11 proceedings, which may
interfere with the Company's ability to develop and consummate a
consensual plan of reorganization; and
- the potential adverse effects of
the chapter 11 proceedings on the Company's liquidity or results of
operations.
This list of factors is not intended to be exhaustive, and
additional information concerning relevant risk factors can be
found in Dayton Superior's Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K filed with
the Securities and Exchange Commission.
In drawing conclusions set out in our forward-looking statements
above, we have assumed, among other things: the ability of the
Company to obtain court approval with respect to its motions in the
chapter 11 proceedings; the ability of the Company to obtain final
approval of and operate pursuant to the terms of the DIP facility;
the ability of the Company to prosecute, develop and consummate a
plan of reorganization with respect to the chapter 11 proceedings;
that the Company will be able to manage the risks associated with
third party motions in the chapter 11 proceedings and they will not
interfere with the Company's ability to develop and consummate a
plan of reorganization; the Company will be able to adequately
manage any potential adverse effects of the chapter 11 proceedings
on the Company's liquidity or results of operations.
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