Haynes International, Inc. has completed the necessary steps to implement its Plan of Reorganization and has successfully emerged from Chapter 11.
Haynes president and CEO Francis J. Petro said, "We have officially completed our Chapter 11 restructuring and we emerge with a greatly de-leveraged balance sheet and significant cash resources to allow the Company to emerge from Chapter 11 as a stronger business."
"The fact that we were able to complete the Chapter 11 process in just five months is a testament to the hard work, loyalty and support of many groups to whom I would like to extend my gratitude on behalf of the Company," Petro said.
"First, I would like to thank our employees, including the membership of United Steel Workers of America (USWA) Local 2958, for their dedication, hard work and patience throughout this process. I would also like to thank our vendors and customers for their outstanding support. I am pleased to say that all vendors will receive 100% payment for pre-petition claims that are ultimately allowed. Finally, I would like to express my appreciation for the hard work and commitment demonstrated by Blackstone and our legal and financial advisors. Their efforts have been crucial to our success."
Now that Haynes has emerged from Chapter 11, the previously announced modification of Haynes' collective bargaining agreement with the USWA becomes effective. In addition, Haynes has closed its $100-million exit financing facility with Congress Financial Corporation (Central), substantially of all which is immediately available. It is anticipated that the exit financing facility will provide the Company with sufficient resources to complete several capital expenditure projects over the next three years. It is the Company's intent to focus many improvement projects at the Company's main manufacturing facilities in Kokomo, Indiana. In addition, Haynes' pension plan was not affected by the Chapter 11 cases.
In recent months, Haynes' sales have improved. "We have seen increased sales in each of our major markets and our order backlog has doubled since this time a year ago," Petro said. "As we emerge from Chapter 11, we intend to continue to service our customers and capitalize on the increased customer demand for our products. We are confident that with continued support from our vendors and the $100 million exit financing facility that we have obtained, we should be able to grow our business."
Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, high performance alloys, primarily for use in the aerospace and chemical processing industries.