Providence, R.I. - The U.S. Bankruptcy Court for the
District of Delaware approved Nortek's prepackaged Chapter 11 filing,
the company said.
"Nortek expects to emerge from bankruptcy as a reorganized
company as expeditiously as possible," the owner of multiple
custom-installation companies said in a prepared statement.
The plan will eliminate about $1.3 billion out of a total $2.05
billion in debt, the company said. Nortek also has a commitment for a $250
million asset-backed credit facility that will be available for general
business operations after the company emerges from Chapter 11. Nortek
previously stated that it has no plans to sell any of its subsidiaries and
anticipates no Nortek management changes.
In late October, the court approved multiple Nortek requests,
including permission to pay trade creditors any balances incurred before the
Oct. 21 Chapter 11 filing, pay all salaries and wages to employees, honor all
customer programs and product warranties, and continue to use cash on hand for
general business operations.
Nortek owns multiple companies that sell products for commercial
and residential installation. In home technology, the company's brands include
many of the major powers in the residential custom-install industry, such as
Aton, Channel Plus, Elan, Gefen,
Imerge, M&S, Niles, OmniMount, Panamax,
SpeakerCraft, Sunfire and Xantech. The company also owns residential HVAC and
ventilation companies and commercial HVAC suppliers.