International Aluminum files for Chapter 11
Wednesday, Jan 06, 2010
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* Co. hurt by a fall in construction sector
* Says is in a very strong cash position
* Co.'s Canadian units not included in Chapter 11
Jan 5 (Reuters) - International Aluminum Corp, a U.S. producer of aluminum and vinyl building products, filed for Chapter 11 bankruptcy late on Monday, hurt by a downturn in both residential and commercial construction sectors.
International Aluminum has estimated assets and liabilities in the range of $100 million to $500 million, court documents show.
The goal of the restructuring deal is to reduce the company's debt and other guaranteed obligations, International Aluminum said in a statement.
"Like many other manufacturing companies in the U.S., the protracted recession has had a dramatic impact on our ability to manage debt costs and comply with our debt guidelines," Chief Executive Dick Almy said in the statement.
The company said it is in a very strong cash position, allowing it to continue to support its ongoing operations, including paying vendors and suppliers.
The company also said that its Canadian subsidiaries are not included in the Chapter 11 filing.
The case is In re: International Aluminum Corp, U.S. Bankruptcy Court, District of Delaware, No. 10-10003.
(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)