EX-99.1
6
dp10210_ex9901.htm
Exhibit
99.1
TEKNI-PLEX,
INC. SUCCESSFULLY COMPLETES FINANCIAL RESTRUCTURING
AND
APPOINTS PAUL J. YOUNG AS CHIEF EXECUTIVE OFFICER
SOMERVILLE, NJ, June 2, 2008
-
Tekni-Plex, Inc. announced today
that it has successfully completed a
restructuring of its capital structure
that has strengthened the
Company's financial position and its ability to operate and grow its businesses.
Tekni-Plex today also announced that Paul J. Young has been named Chief
Executive Officer, succeeding Dr. F. Patrick Smith, who has elected to
retire.
As
previously announced, on April 11, 2008, Tekni-Plex entered into an agreement
with certain of its stakeholders regarding a restructuring that, among other
things, would deleverage its balance sheet, increase liquidity and reduce annual
interest expense. The restructuring has now been consummated,
enabling the Company to continue to meet its obligations to its employees,
creditors, customers and suppliers.
"The consummation of
the restructuring agreement without any major disruptions to the operations of
the Company represents the efforts of a number of constituencies working
together to develop a solution that positions Tekni-Plex for future success as a
leader in the packaging and tubing markets", said James A. Mesterharm, Chief
Restructuring Officer of Tekni-Plex, Inc. "We are extremely appreciative of the
continued support throughout this process of our employees, customers and
suppliers. We are also grateful for Oaktree Capital Management and Avenue
Capital Group's role in solidifying our capital structure and providing support
for the business as it completes its turnaround".
As
a result of the restructuring,
Oaktree Capital Management and Avenue Capital Group own a controlling interest
of over 80% of the common stock of Tekni-Plex. Oaktree is
a
Los Angeles headquartered, global alternative investment management firm, with
over $54 billion in assets under management. Avenue Capital is a global
investment management firm with approximately $20 billion in assets under
management, with headquarters in New York.
Pursuant to the
restructuring:
·
Holders of
approximately 96.3% of the Company's 12.75% Senior Subordinated Notes due
2010 (the "Subordinated Notes"), representing approximately $342 million
in debt, have exchanged their notes for 100% of the common stock of
Tekni-Plex, subject to dilution by a management incentive plan and the
exercise of the warrants described below. The restructuring of this
obligation lessens the Company's annual interest burden by approximately
$39 million.
·
All general
unsecured creditors of Tekni-Plex, including trade creditors, are
unaffected by the restructuring, and the Company intends to continue to
honor its obligations to those creditors in the ordinary course of
business.
·
The Company
will continue to honor its obligations under its expanded $110 million
credit facility, its 10.875% Senior Secured Notes due 2012, its 8.75%
Senior Secured Notes due 2013 and any remaining Subordinated Notes that
have not been exchanged for common
stock.
·
The Company's
preferred stock has been exchanged for three tranches of warrants to
purchase common shares of the Company at various exercise
prices.
·
The Company's
existing common stock has been purchased by the Company for
$250,000.
The
restructuring of the Company's Subordinated Notes has met the conditions
established by the each of the Company's revolving credit facility lenders, and
as such the lenders have agreed to enhance Tekni's liquidity by increasing the
maximum availability under the credit facility from $95 million to $110
million.
Paul Young joins
Tekni-Plex from Graham Packaging, where he led the integration of the
acquisition of the Owens-Illinois plastic container business and later became
Senior Vice President of the PET Bottle division, which had revenues of over
$900 million and over 23 plants in North America. Young also served
in senior business and manufacturing roles for Owens-Illinois, Continental PET
Technologies, and Continental Can. He has an MBA from DePaul
University and a BS in Chemical Engineering from University of Toledo. Paul will
work with Jim Mesterharm to facilitate an orderly transition of the operations
of Company
"I
am looking forward to joining the Tekni-Plex team and continuing to drive the
success of the Company in the many packaging and tubing segments in which we
enjoy a leadership position", Young said. "I am also very eager to
get out and meet our customers and vendors to see where I can make a difference
to improve our business. We intend to continue to strive to be an
innovative partner to our customers and vendors by delivering high quality
products, while making an acceptable return for our shareholders".
With the completion
of the restructuring, Dr. F. Patrick Smith, Tekni-Plex's former Chief Executive
Officer and Chairman of the Board, has retired. "We appreciate Dr. Smith's years
of service to Tekni-Plex and his efforts in working constructively towards the
restructuring", Mesterharm said.
About
Tekni-Plex, Inc.
Tekni-Plex is a
global, diversified manufacturer of packaging, packaging products and materials,
as well as tubing products. The Company primarily serves the food, healthcare
and consumer markets. It has built leadership positions in its core markets, and
focuses on vertically integrated production of highly specialized
products. Tekni-Plex has operations in the United States, Europe,
China, Argentina and Canada.
The
Company's operations are aligned under two business segments: Packaging and
Tubing Products. Representative product lines in the Packaging segment include
foam egg cartons; pharmaceutical blister films; poultry and meat processor
trays; closure liners; aerosol and pump packaging components; and foam plates.
Representative product lines in the Tubing Products segment include garden and
irrigation hose; medical tubing; and aeration hose. The Company also
manufactures other products that do not fit in either of these segments,
including recycled PET, vinyl compounds and specialty resins.
This press release
includes statements that may constitute "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995, usually
containing the words "believe", "estimate", "project", "expect" or similar
expressions. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. Factors that would cause or contribute to such
differences include, but are not limited to: price volatility and availability
of raw materials and the Company's ability to correspondingly increase its
prices, competitive factors, risks related to foreign investments and
operations, seasonality, changes in environmental and safety laws and
regulations and other risks discussed in the Company's periodic and other
filings with the Securities and Exchange Commission. By making these
forward-looking statements, Tekni-Plex undertakes no obligation to update these
statements for revisions or changes after the date of this release.
#
# #
Contact:
Media
Inquiries Only:
Kekst and
Company
Michael
Freitag
(212)
521-4800

EX - 99 . 1 6 dp10210 _ ex9901 . htm Exhibit 99 . 1 TEKNI - PLEX , INC . SUCCESSFULLY COMPLETES FINANCIAL RESTRUCTURING AND APPOINTS PAUL J . YOUNG AS CHIEF EXECUTIVE OFFICER SOMERVILLE , NJ , June 2 , 2008 - Tekni - Plex , Inc . announced today that it has successfully completed a restructuring of its capital structure that has strengthened the Company 's financial position and its ability to operate and grow its businesses . Tekni - Plex today also announced that Paul J . Young has been named Chief Executive Officer , succeeding Dr . F . Patrick Smith , who has elected to retire . As previously announced , on April 11 , 2008 , Tekni - Plex entered into an agreement with certain of its stakeholders regarding a restructuring that , among other things , would deleverage its balance sheet , increase liquidity and reduce annual interest expense . The restructuring has now been consummated , enabling the Company to continue to meet its obligations to its employees , creditors , customers and suppliers . " The consummation of the restructuring agreement without any major disruptions to the operations of the Company represents the efforts of a number of constituencies working together to develop a solution that positions Tekni - Plex for future success as a leader in the packaging and tubing markets " , said James A . Mesterharm , Chief Restructuring Officer of Tekni - Plex , Inc . " We are extremely appreciative of the continued support throughout this process of our employees , customers and suppliers . We are also grateful for Oaktree Capital Management and Avenue Capital Group 's role in solidifying our capital structure and providing support for the business as it completes its turnaround " . As a result of the restructuring , Oaktree Capital Management and Avenue Capital Group own a controlling interest of over 80 % of the common stock of Tekni - Plex . Oaktree is a Los Angeles headquartered , global alternative investment management firm , with over $ 54 billion in assets under management . Avenue Capital is a global investment management firm with approximately $ 20 billion in assets under management , with headquarters in New York . Pursuant to the restructuring : · Holders of approximately 96 . 3 % of the Company 's 12 . 75 % Senior Subordinated Notes due 2010 ( the " Subordinated Notes " ) , representing approximately $ 342 million in debt , have exchanged their notes for 100 % of the common stock of Tekni - Plex , subject to dilution by a management incentive plan and the exercise of the warrants described below . The restructuring of this obligation lessens the Company 's annual interest burden by approximately $ 39 million . · All general unsecured creditors of Tekni - Plex , including trade creditors , are unaffected by the restructuring , and the Company intends to continue to honor its obligations to those creditors in the ordinary course of business . · The Company will continue to honor its obligations under its expanded $ 110 million credit facility , its 10 . 875 % Senior Secured Notes due 2012 , its 8 . 75 % Senior Secured Notes due 2013 and any remaining Subordinated Notes that have not been exchanged for common stock . · The Company 's preferred stock has been exchanged for three tranches of warrants to purchase common shares of the Company at various exercise prices . · The Company 's existing common stock has been purchased by the Company for $ 250,000 . The restructuring of the Company 's Subordinated Notes has met the conditions established by the each of the Company 's revolving credit facility lenders , and as such the lenders have agreed to enhance Tekni 's liquidity by increasing the maximum availability under the credit facility from $ 95 million to $ 110 million . Paul Young joins Tekni - Plex from Graham Packaging , where he led the integration of the acquisition of the Owens - Illinois plastic container business and later became Senior Vice President of the PET Bottle division , which had revenues of over $ 900 million and over 23 plants in North America . Young also served in senior business and manufacturing roles for Owens - Illinois , Continental PET Technologies , and Continental Can . He has an MBA from DePaul University and a BS in Chemical Engineering from University of Toledo . Paul will work with Jim Mesterharm to facilitate an orderly transition of the operations of Company " I am looking forward to joining the Tekni - Plex team and continuing to drive the success of the Company in the many packaging and tubing segments in which we enjoy a leadership position " , Young said . " I am also very eager to get out and meet our customers and vendors to see where I can make a difference to improve our business . We intend to continue to strive to be an innovative partner to our customers and vendors by delivering high quality products , while making an acceptable return for our shareholders " . With the completion of the restructuring , Dr . F . Patrick Smith , Tekni - Plex 's former Chief Executive Officer and Chairman of the Board , has retired . " We appreciate Dr . Smith 's years of service to Tekni - Plex and his efforts in working constructively towards the restructuring " , Mesterharm said . About Tekni - Plex , Inc . Tekni - Plex is a global , diversified manufacturer of packaging , packaging products and materials , as well as tubing products . The Company primarily serves the food , healthcare and consumer markets . It has built leadership positions in its core markets , and focuses on vertically integrated production of highly specialized products . Tekni - Plex has operations in the United States , Europe , China , Argentina and Canada . The Company 's operations are aligned under two business segments : Packaging and Tubing Products . Representative product lines in the Packaging segment include foam egg cartons ; pharmaceutical blister films ; poultry and meat processor trays ; closure liners ; aerosol and pump packaging components ; and foam plates . Representative product lines in the Tubing Products segment include garden and irrigation hose ; medical tubing ; and aeration hose . The Company also manufactures other products that do not fit in either of these segments , including recycled PET , vinyl compounds and specialty resins . This press release includes statements that may constitute " forward - looking " statements within the meaning of the Private Securities Litigation Reform Act of 1995 , usually containing the words " believe " , " estimate " , " project " , " expect " or similar expressions . Forward - looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward - looking statements . Factors that would cause or contribute to such differences include , but are not limited to : price volatility and availability of raw materials and the Company 's ability to correspondingly increase its prices , competitive factors , risks related to foreign investments and operations , seasonality , changes in environmental and safety laws and regulations and other risks discussed in the Company ' s periodic and other filings with the Securities and Exchange Commission . By making these forward - looking statements , Tekni - Plex undertakes no obligation to update these statements for revisions or changes after the date of this release . # # # Contact : Media Inquiries Only : Kekst and Company Michael Freitag ( 212 ) 521 - 4800