Arclin Files Plan of Reorganization in U.S. Court

    
    Filing Represents Significant Milestone in Restructuring Process




    
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<p>MISSISSAUGA, Ontario, <chron>Sept. 22</chron> /CNW/ -- Arclin, a privately held provider of bonding and surfacing solutions, today announced that it has filed a Plan of Reorganization (the "Plan") with the <location>United States</location> Bankruptcy Court for the District of Delaware (the "Court").  The Company intends to seek confirmation of the Plan at a confirmation hearing before the end of the year.</p>
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<p>Arclin's Plan has broad support from the Company's first and second lien lenders.  Under the terms of the Plan, Arclin's funded indebtedness will be reduced from US$234 million to US$60 million.</p>
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<p>Claudio D'Ambrosio, Arclin's President and Chief Executive Officer, said, "The filing of our Plan is a significant step toward completing the restructuring process and emerging as a stronger, healthier company, better able to compete and achieve long-term success.  We have worked diligently to strengthen our balance sheet and enhance our financial flexibility, and we are pleased with our substantial progress.  We are confident that this process will position us for continued profitable growth."</p>
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<p>Mr. D'Ambrosio added, "I want to thank our employees for their continued hard work and dedication throughout this process, as well as our loyal customers, supportive suppliers and other stakeholders, all of whom played a significant role in helping us reach this important milestone."</p>
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<p>Upon confirmation of the Plan, affiliates of Black Diamond Capital Management, L.L.C. and Silver Point Capital, L.P. will become the majority owners of the Company through an exchange of debt for equity.  Black Diamond's affiliates and Silver Point have been lenders to the Company since 2007.</p>
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<p>The Plan is subject to confirmation by the U.S. Court and is also subject to approval of a plan of arrangement, which will be filed by the Canadian Arclin entities in <location>Canada</location>.  This release is not intended as a solicitation for a vote on the Plan.</p>
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<p>Additional information about Arclin's financial restructuring is available via the Company's toll-free Restructuring Information Hotline at [phone] in the U.S. or at [phone] in <location>Canada</location>.  In addition, Court documents and other updates are available at websites that have been set up by Arclin's Court appointed Monitor in <location>Canada</location> and by the Company's Claims Agent in the U.S. (http:///<a href="http://www.ey.com/ca/arclin">www.ey.com/ca/arclin</a> and <a href="http://www.kccllc.net/arclin">www.kccllc.net/arclin</a>).</p>
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    About Arclin
    
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<p>Based in Mississauga, Ontario, Arclin is a leading provider of innovative bonding and surfacing solutions for the building and construction, engineered materials and natural resource markets. Arclin provides bonding solutions for a number of applications including wood based panels, engineered wood, non-wovens and paper impregnation. As a world leader in paper overlays technology, Arclin provides high value surfacing solutions for decorative panels, building products and industrial specialty applications for North American and export markets.</p>
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    Contacts
    
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    Kevin Griffin
    Director, Marketing and Communications
    [phone] ext 3020
    
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    Andy Brimmer / Andrew Siegel / Ariel LeBoff
    Joele Frank, Wilkinson Brimmer Katcher
    [phone]






    

For further information: Kevin Griffin, Director, Marketing and Communications of Arclin, [phone] ext 3020; or Andy Brimmer, Andrew Siegel, or Ariel LeBoff, all of Joele Frank, Wilkinson Brimmer Katcher, [phone] Web Site: http://www.ey.com/ca/arclin