Glasstech: Reorganization plan

After receiving the United States District Court“s approval in June, Glasstech, Inc.“s plan of financial reorganization became effective as of 12 July. The court“s action paves the way for the emer…

After receiving the United States District Court“s approval in June, Glasstech, Inc.“s plan of financial reorganization became effective as of 12 July. The court“s action paves the way for the emergence of a much stronger and more viable company. “When we filed just five months ago, we said the company would emerge quickly and strongly; and that“s what has happened, said Mark D. Christman, Glasstech“s president and CEO. “The financial reorganization converts all US$ 70 million of the company“s debt into equity which provides further relief to the company through elimination of an annual interest expense of approximately US$ 9 million. This conversion of debt to equity dramatically improves our balance sheet and greatly improves our cash flow. We are now positioned to serve the need of customers well into the future,” Christman added. John Baxter, Glasstech“s senior vice president, marketing and sales, added: “For more than 30 years, Glasstech has produced leading-edge glass bending and tempering systems and has supplied them to glass processors worldwide. Many of our systems have become standards in the industry. Glasstech has developed some excellent new products and, with our financial situation now resolved, I expect our sales to be even stronger.” Founded in 1971, Glasstech has installed more than 400 glass bending and tempering systems in 45 countries on six continents.