On September 22, 2009, Arclin announced that it filed a Plan of Reorganization with the U.S. Bankruptcy Court for the District of Delaware.  Arclin’s Plan has broad support from the Company’s first and second lien lenders, and the Company intends to seek confirmation of the Plan at a confirmation hearing before the end of the year. 

Arclin continues to work constructively with all of its stakeholders and looks forward to completing a successful financial restructuring. 

On July 27, 2009, Arclin announced that it reached an agreement in principle with certain of its key senior lenders on the terms of a financial restructuring to strengthen the Company’s balance sheet and enhance its financial flexibility.

Under terms of the agreement, Arclin’s funded indebtedness will be reduced from US$234 million to US$60 million.  A post-petition financing facility of US$25 million is also part of the financial restructuring.

In order to facilitate its financial restructuring, Arclin elected to file for court-supervised restructuring proceedings in the United States and in Canada.  Arclin’s U.S. companies have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.  Arclin’s Canadian companies have made a filing with the Ontario Superior Court of Justice and have obtained an Initial Order authorizing Arclin to reorganize under the Companies’ Creditors Arrangement Act (“CCAA”).  Arclin’s subsidiaries in Mexico are not included in the filings.

For more information, please visit the websites below:

Arclin's Court appointed Monitor: www.ey.com/ca/arclin

Arclin's Claim Agent: www.kccllc.net/arcln.