Imperial Capital Advises the First Lien Lenders in the Reorganization of Arclin Under Chapter 11 of the U.S. Bankruptcy Code and the Canadian Companies' Creditors Arrangement Act


LOS ANGELES, CA--(Marketwire - January 21, 2010) - Imperial Capital announced today that Arclin's financial restructuring is complete as its Plan of Reorganization and Plan of Arrangement as previously approved by the US and Canadian Courts, respectively, have gone effective. Arclin, based in Mississauga, Ontario, is a vertically integrated manufacturer of adhesive resins and surface products employed in high performance adhesion and surfacing applications.

Imperial Capital, LLC acted as financial advisor to the agent for the pre-petition first lien lenders to Arclin. Arclin filed for protection under the US Bankruptcy Code and the Canadian Companies' Arrangement Act in July 2009 with a pre-negotiated plan among its prepetition secured creditors. During the reorganization, a group of first lien lenders provided a $25 million debtor-in-possession (DIP) Facility that was refinanced at emergence by Bank of America into a $25 million revolving credit facility.

In December 2009, the financial restructuring was approved by the US and Canadian Courts providing for a reduction of funded indebtedness from over $230 million to $60 million. Affiliates of Black Diamond Capital Management and Silver Point Capital are now majority owners of the Company.

"Imperial Capital's comprehensive restructuring capabilities were integral to the development and implementation of a consensual restructuring for Arclin that provides an appropriate capital structure to position Arclin for future success. This transaction underscores our capabilities not only across the capital structure but also cross border," said Jason Reese, Chairman and Chief Executive Officer of Imperial Capital.

About Imperial Capital, LLC

Imperial Capital, founded in 1997, is a full-service investment banking firm with offices in Los Angeles, New York, San Francisco, Boston, Houston and Minneapolis. The firm currently employs over 170 professionals and offers a wide range of proprietary products and services to institutional investors, middle market companies, and private equity firms. Imperial Capital provides institutional clients research and sales and trading of high yield and distressed debt securities, bank debt, convertible bonds, preferred stocks, and equities. The firm provides middle market companies and financial sponsors with capital markets, merger and acquisitions, capital structure, restructuring and recapitalization advisory services. More information about Imperial Capital can be found at www.imperialcapital.com.

About Arclin

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. Additional information about the Company can be obtained by visiting the Company's web site at www.Arclin.com

Contact Information: For more information regarding Imperial Capital or this transaction, please contact: Press: Anna Halloran Jacob Imperial Capital, LLC (310) 246-3675 ahalloranjacob@imperialcapital.com