PTC Alliance Restructuring Continuing to Progress

- Company Obtains Court Authority to Tap DIP Facility

PR Newswire

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WEXFORD, Pa., Nov. 18 /PRNewswire/ -- PTC Alliance ( www.ptcalliance.com ), a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome-plated rod, said today the Company's Chapter 11 restructuring is continuing to progress, citing a recent court ruling.

On November 12, The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware authorized the Company to obtain up to $3 million debtor-in-possession financing from Black Diamond Capital Management on an interim basis and, upon entry of the Final Order scheduled for December 3, up to $7 million. The Company will use the financing, together with cash generated from operations, to pay all approved obligations as they come due during the Chapter 11 process.

"The relief granted by Judge Sontchi helps to remove any uncertainties and puts PTC Alliance on a clear path to a successful restructuring," said Peter Whiting, the company's Chairman and Chief Executive Officer. "PTC Alliance remains on track to execute a sale that will strengthen the Company's balance sheet and allow us to continue serving our valued customers for years to come."

As previously announced, PTC Alliance has entered into an asset purchase agreement with funds managed by Black Diamond Capital Management LLC, the pre-petition term lenders, to act as a "stalking horse" bidder for the sale of substantially all of the company's assets pursuant to Section 363 of the U.S. Bankruptcy Code. The bid will be subject to higher and better offers at an auction on December 16, 2009, and the ultimate sale will be subject to approval by the Bankruptcy Court at a hearing on December 17, 2009.

"We are pleased to provide the debtor-in-possession financing through an uncontested motion and are supportive of what management is doing to guide the company through the Chapter 11 process," said Christopher Boyle of Black Diamond Capital Management. "We look forward to owning the company, should we be selected as the winning bidder for the assets."

PTC Alliance and its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code on Oct. 1, 2009 in the U.S. Bankruptcy Court, District of Delaware. The case is 09-13395.

About PTC Alliance

PTC Alliance is a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome-plated rod. The company's major customers include steel service centers, automotive and truck manufacturers, construction and agricultural equipment OEMs and machinery and appliance makers. With eleven strategically located factories in North America and a manufacturing complex in Germany, PTC Alliance is able to minimize lead time, shipping distance and expense for its customers.

SOURCE PTC Alliance

2009-11-18 09:16:00