TPT September 2009

I ndustry N ews

RathGibson enters important phase of financial restructuring

bankruptcy court approval, which we expect to obtain, secured ‘debtor-in-possession’ financing, which will provide the company with sufficient liquidity to continue normal operations during this transition period. “Our brand, our products, our quality systems and our people remain strong. This process is strictly a financial restructuring of our debt. We are fully committed to ensuring that our valued customers and channel partners are not affected by this restructuring process. “During this period, we will work even more closely with our customers, channel partners, vendors, suppliers and employees to deliver the same level of service they expect and deserve from RathGibson. “I remain thankful for the steadfast support of our employees and other stakeholders throughout this entire process, and I am confident in our ability to expand and pursue new opportunities for the

RATHGIBSON, Inc and its domestic affiliates have announced that they have begun reorganisation proceedings under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. In connection with the filing, RathGibson also has filed a proposed plan of reorganisation that provides for holders of allowed general unsecured creditors to be unimpaired and paid in full on undisputed amounts owed prior to the bankruptcy filing. The plan has the unanimous support of the company’s prepetition secured lender, boards of directors, and the management leadership of the company, as well as certain key noteholders. The plan, if consummated, will result in significantly reducing the company’s debt burden.

The Chapter 11 filing marks an important step in RathGibson’s ongoing efforts to position the company for long-term success. “The current management team inherited a significant debt load that cannot be sustained, particularly in these challenging financial markets,” said Mike Schwartz, president and CEO of RathGibson. “As a result, we must take action to position the company for the future. No one should be confused about what a bankruptcy process means for RathGibson. “Following a record year of performance in 2008 for RathGibson and the industry, we are experiencing demand levels reduced by 50%. This reduction in demand combined with our leveraged position necessitates this action. We will emerge from this process stronger than ever.” Mr Schwartz emphasised that the Chapter 11 filing should have no impact on day- to-day operations. “We have, subject to

RathGibson brand.” RathGibson – USA Fax : +01 184727 62471 Website: www.rathgibson.com

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S eptember 2009

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