Xerium Technologies, a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, recently announced that it has received overwhelming support from its lenders for a restructuring plan to reduce the Company's debt by approximately $150 million and significantly strengthen its long-term financial health. The Company will implement the "pre-packaged" plan of reorganization with court assistance under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
The Company will operate as usual during the court process, which is anticipated to be concluded in 30 to 60 days. The restructuring involves Xerium's companies located in the United States, Canada, Austria and its non-operating holding companies in Italy and Germany. The Company's operating entities in Europe, Asia, South America, Italy, and Germany are not part of the court process or the restructuring.
"We are delighted to receive such overwhelming support from our lenders, which allows us to quickly move forward with our pre-packaged restructuring plan," commented Stephen R. Light, Xerium's Chairman, CEO and President. "This is a major accomplishment for the Company that will enable us to continue implementing our three-part operating strategy; reducing our debt load, introducing new products that our customers value and maximizing the contribution of our employees."
