TPi October 2009

news business & market

RathGibson enters important phase of financial restructuring

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 brand.”

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

RATHGIBSON 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 filingmarks 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 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

RathGibson – USA www.rathgibson.com

New opportunities in the chemical and petrochemical markets WITH a newly opened office in Buenos Aires, Argentina, RathGibson, a manufacturer of welded, welded and drawn, and seamless stainless steel, nickel, and titanium tubing, has found new prospects with chemical and petrochemical companies in the countries of Brazil, Mexico, Argentina, and the rest of Central and South America. “While we have always supported consumers in Central and South America, the opening of our Buenos Aires office has led to affiliations with new channel partners and customers that we would not have gained otherwise,” said Andrew Yeghnazar, vice-president – international sales and business development. “RathGibson continues to put the needs of our customers first with our commitment to provide real solutions in a timely manner. RathGibson’s empowered associates are able to make decisions based upon their firsthand experience of local industrial requirements.” A main manufacturing segment in Central and South America is chemical and petrochemical processing. The chemical sector in Brazil is the ninth largest in the world. Brazil’s petrochemical companies have been undergoing a restructuring to streamline effectiveness and increase efficiencies. Mexico’s chemical industry is still experiencing growth, while its government is encouraging private investment in petrochemical processing. Argentina’s petrochemical production has been increasing, while Argentina’s chemical industry accounts for 5% of gross domestic product (GDP). All these countries represent opportunities upon which the RathGibson Buenos Aires office will expand.

Chemical petrochemical companies chose RathGibson for their tubing in various alloys, including stainless steel 304L and 316L, duplex stainless steel Duplex 2205, Lean Duplex 2102, Lean Duplex Nitronic 19D, Lean Duplex 2003, Lean Duplex 2304, Super Duplex 2304, and Super Duplex 2507, titanium, and nickel. RathGibson tubing is suited to challenging applications such as ubend, heat exchangers, steam condensers, desalinisation, feedwater heaters, instrumentation, pressure coils, steel boilers and super heaters. and

RathGibson – USA www.rathgibson.com

9

www.read-tpi.com

October 2009 Tube Products International