Projo Biz Blog

In a statement issued Thursday, Nortek said that the company and its domestic subsidiaries filed the voluntary petitions for reorganization as planned, and will continue to operate their businesses "in the ordinary course throughout the Chapter 11 process while they seek confirmation of their prepackaged plans of reorganization."

Nortek said it anticipates that cash on hand and cash from operating activities will be adequate to fund its projected needs during the reorganization process, including the payment of operating costs and expenses.

At the time the Chapter 11 petitions were filed, Nortek and its subsidiaries had more than $125 million in cash on hand. In addition, as previously announced, Nortek said it had received a commitment for a $250-million credit facility that will be available upon emergence from bankruptcy.

Richard L. Bready, Nortek chairman and chief executive officer, said in a statement, "We continue to believe that Nortek has fundamentally sound businesses operating in established markets that are poised for growth as economic conditions improve. The Chapter 11 process will enable Nortek to emerge as an even stronger company with substantially less debt."

Bready added that, "Going forward, we anticipate no disruption in product availability or delivery of products and remain focused on meeting customer needs worldwide."

Nortek said it expects the Chapter 11 process will take about two to three months to complete.

Nortek also said that no management changes are anticipated and it has no plans to sell any of its subsidiaries.

In addition, Nortek said that its immediate and ultimate parent holding companies, Nortek Holdings, Inc. and NTK Holdings Inc., also filed voluntary petitions for reorganization under Chapter 11. (The pre-packaged plans for NTK Holdings and Nortek Holdings may be confirmed separately from the prepackaged plans for Nortek and its subsidiaries.)