Back to DSUP
Court Approves Dayton Superior Disclosure Statement, Company Moves Closer to Chapter 11 Exit

Dayton Superior Corporation (Pink Sheets: DSUPQ) (the “Company”), the leading North American provider of specialized products for the nonresidential concrete construction market, today announced that United States Bankruptcy Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware in Wilmington has signed an order approving the Company’s disclosure statement. The order affirms that the document contains adequate information for creditors to evaluate the proposed plan of reorganization, which was filed with the Court on July 23, 2009. As previously announced, Dayton Superior filed a voluntary petition for reorganization under chapter 11 of the U.S. Bankruptcy Code on April 19, 2009.

The Company said it expects to mail creditors the disclosure statement, plan of reorganization, and ballots to vote on the plan during the first week of September, 2009, with a deadline of October 1, 2009, for casting ballots. The Court set October 14, 2009, as the date for the confirmation hearing on the plan of reorganization.

“We are pleased that the Court has approved the disclosure statement,” said Rick Zimmerman, Dayton Superior's President and Chief Executive Officer. “This will enable us to proceed with the vote on the proposed plan of reorganization, which we believe has the support of an overwhelming majority of creditors. We believe we are on track to emerge from Court protection by the end of October.”

Under the proposed plan of reorganization, prepetition senior subordinated notes would be converted to equity in the new Dayton Superior and qualified noteholders would have the right to purchase additional shares of stock through a $100 million rights offering. Two of the largest prepetition note holders, Oaktree Capital Management, L.P. and Solus Alternative Asset Management LP, have agreed to backstop any unsubscribed portion of the rights offering. They would own a substantial majority of the stock of the reorganized Company, which would be privately held.

“This exit plan is available to us because of the commitment of Oaktree and Solus to backstop the rights offering, which is a strong statement about the future of the Company,” said Zimmerman. “Upon confirmation of the plan, we will emerge with exit financing in place, substantially less debt, and a sustainable, conservative capital structure. We will have the resources to grow the business and pursue attractive investment opportunities that may come along. We also have taken advantage of the reorganization process to re-examine and consolidate our physical infrastructure to become stronger, leaner, and more efficient.”

Dayton Superior filed a voluntary petition for reorganization under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in Wilmington on April 19, 2009. Additional information about for creditors and other parties is available through a link on the Company website, www.daytonsuperior.com.

While the Company is in chapter 11, investments in its securities will be highly speculative. Investors should assume that shares of the Company's common stock have no value. Under the proposed plan of reorganization, existing shares of the Company's common stock would be cancelled upon consummation of the Company’s reorganization with no consideration being paid for such shares. The outcome of the chapter 11 restructuring case is uncertain and subject to substantial risk. There can be no assurance that the Company will be successful in achieving its financial reorganization.

ABOUT DAYTON SUPERIOR CORPORATION

Dayton Superior is the leading North American provider of specialized products consumed in nonresidential, concrete construction, and we are the largest concrete forming and shoring rental company serving the domestic, nonresidential construction market. Our products can be found on construction sites nationwide and are used in nonresidential construction projects, including: infrastructure projects, such as highways, bridges, airports, power plants and water management projects; institutional projects, such as schools, stadiums, hospitals and government buildings; and commercial projects, such as retail stores, offices and recreational, distribution and manufacturing facilities.

Note: Certain statements made herein concerning anticipated future performance are forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of important factors. Representative examples of these factors include (without limitation):

  • Depressed or fluctuating market conditions for the Company's products and services;
  • operating restrictions imposed by the Company's existing debt;
  • increased raw material costs and operating expenses;
  • the ability to increase manufacturing efficiency, leverage purchasing power and broaden the Company's distribution network;
  • the competitive nature of the nonresidential construction industry in general, as well as specific market areas;
  • the Company's ability to obtain court approval with respect to its motions in the chapter 11 proceedings;
  • the ability of the Company to operate pursuant to the terms of the DIP facility;
  • the ability of the Company to prosecute, develop and consummate a plan of reorganization with respect to the chapter 11 proceedings;
  • risks associated with third-party motions in the chapter 11 proceedings, which may interfere with the Company's ability to develop and consummate a consensual plan of reorganization; and
  • the potential adverse effects of the chapter 11 proceedings on the Company's liquidity or results of operations.

This list of factors is not intended to be exhaustive, and additional information concerning relevant risk factors can be found in Dayton Superior's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the Securities and Exchange Commission.

In drawing conclusions set out in our forward-looking statements above, we have assumed, among other things: the ability of the Company to obtain court approval with respect to its motions in the chapter 11 proceedings; the ability of the Company to operate pursuant to the terms of the DIP facility; the ability of the Company to prosecute, develop and consummate a plan of reorganization with respect to the chapter 11 proceedings; that the Company will be able to manage the risks associated with third party motions in the chapter 11 proceedings and they will not interfere with the Company's ability to develop and consummate a plan of reorganization; and the Company will be able to adequately manage any potential adverse effects of the chapter 11 proceedings on the Company's liquidity or results of operations.

(c) 2009 Business Wire, Inc., All rights reserved. All of the news releases and other content contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. Any copying or reproduction (other than for an individual user's personal reference), redistribution, reposting or other transmission or communication is expressly prohibited without prior written permission of Business Wire, Inc
Back to DSUP
Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki