SOURCE: EaglePicher Incorporated

November 29, 2005 18:45 ET

EaglePicher Incorporated Announces Signing of Plan of Reorganization Term Sheet and Bankruptcy Court Approval of New Financing

PHOENIX, AZ -- (MARKET WIRE) -- November 29, 2005 -- EaglePicher Incorporated announced today that it and certain Debtor affiliates agreed to a term sheet with their Official Committee of Unsecured Creditors for a consensual plan of reorganization in their Chapter 11 cases. The plan term sheet provides for the transfer of substantially all of the operating assets of the Debtors to newly formed companies. Under the plan, all of the common stock of the new holding company will be distributed to holders of the Company's 9.75% Senior Notes and certain other unsecured non-trade creditors, with unsecured trade creditors receiving their pro rata share of the plan consideration, if any, in the form of cash payments over time or a single discounted cash payment. The Creditors Committee consists of Tennenbaum Capital Partners, LLC, Angelo, Gordon & Company, L.P., JP Morgan High Yield Partners, Excel Polymers, Inc. and The United Steelworkers of America. Funds managed by Tennenbaum and Angelo, Gordon together own a majority of the 9.75% Senior Notes. Implementation of the transactions contemplated by the plan term sheet is subject to Bankruptcy Court approval.

EaglePicher also announced it has obtained Bankruptcy Court approval of a previously announced commitment from Goldman Sachs Credit Partners L.P. for $295 million of senior secured debtor-in-possession financing and a commitment from Tennenbaum and Angelo, Gordon for $50 million of junior secured debtor-in-possession financing, subject to normal closing conditions. This financing is convertible at the Debtors' option (subject to lender approval of the Debtors' plan of reorganization and other conditions) into post-reorganization financing for the new companies formed through the plan of reorganization and will provide sufficient funding to complete the reorganization. The parties are in the process of finalizing the terms and documentation of the financing.

"In combination with the financing commitments we announced previously, we believe that reaching agreement with the Creditors Committee on the key elements of a plan of reorganization represents a significant milestone for EaglePicher to emerge from bankruptcy. The financing provides us the funding to repay all secured creditors in full, distribute fair value to our unsecured creditors and properly finance each of our businesses going forward," according to Stuart B. Gleichenhaus, interim CEO and Chief Restructuring Officer.

The Company, its parent EaglePicher Holdings, Inc. and certain of their U.S. subsidiaries filed Chapter 11 petitions in the U.S. Bankruptcy Court in the Southern District of Ohio in Cincinnati on April 11, 2005. EaglePicher is represented by Stephen D. Lerner of Squire, Sanders & Dempsey L.L.P. Houlihan Lokey Howard & Zukin is EaglePicher's financial and restructuring advisor. The Creditors Committee is represented by Paul S. Aronzon of Milbank, Tweed, Hadley & McCloy LLP. Miller Buckfire & Co., LLC is financial advisor to the Creditors Committee.

EaglePicher Incorporated, founded in 1843, and headquartered in Phoenix, Arizona, is a diversified manufacturer and marketer of innovative, advanced technology and industrial products and services for space, defense, environmental, automotive, medical, filtration, pharmaceutical, nuclear power, semi-conductor and commercial applications worldwide. The company has 4,200 employees and operates more than 30 plants in the U.S., Canada, Mexico, Korea, and Germany.

EaglePicher™ is a trademark of EaglePicher Incorporated.

Contact Information

  • Contact:
    Stuart Gleichenhaus
    (602) 794-9600