Dayton Superior emerges from bankruptcy protection

Dayton Superior emerges from Chapter 11 bankruptcy protection with reduced debt burden

• On 5:24 pm EDT, Monday October 26, 2009

DAYTON, Ohio (AP) -- Dayton Superior Corp., which makes products used in concrete construction, said it has emerged from bankruptcy protection, effective immediately.

Dayton Superior in April filed for Chapter 11, listing assets of $286 million against liabilities of $413 million. The company had expected to come out of Chapter 11 bankruptcy protection shortly after a federal court in Delaware approved its reorganization plan on Oct. 14.

As part of the agreement, the company also agreed to close its $110 million exit financing facility and new $100 million term loan.

Under the plan, proceeds of a $161 million senior notes offering were converted into new stock in the reorganized company and $70 million worth of debt obligations were paid down. That effort reduced more than two-thirds of the company's debt, according to Dayton Superior.

"Through this financial reorganization, we have substantially reduced the debt burden that severely restricted the company for nearly a decade," said Eric Zimmerman, Dayton Superior's President and CEO. "Our exit facility will provide more than adequate liquidity to meet all of our working capital and capital investment needs."

All existing common shares in the company will be canceled and those shareholders will not recoup their investment, Dayton Superior said.

Oaktree will own a substantial majority of the stock of the reorganized company, which will be privately held and operated by its current management team.

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